~ 3095 min

Bloomberg Livestream - 2022-08-21 00:00:00

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Talk to me about attracting talent so do you do you worry about you know some of the bright young minds going to JP Morgan Golman Sax ORG because they pay more would you worry about them going to crypto or Google because it's exciting. Well I think what I have found is that Minds Are as attracted by money as they are and probably more by once the vision what's for challenge what do I learn Is this company doing things that I am proud of Care for the environment. Do we care for the communities? Will I be followed in my career and develops which is why we just launched the university These things especially in the early years DATE Take Lot of space in their decision As they move through Come in and they move through when what thick spaces how do you treat them How do you track their career manage their career? Do you give them opportunity? That's why I think we're very fortunate. I can have A young person from Bosnia GPE who start in the leading back in Bosnia Tour GPE into Germany GPE And then A skill set that has been refined goes back and it's the bank in Bosnia GPE not many groups can do that and I think that's one of the attraction but we have. Would you like most about being chief executive? Trying to make a difference I have been told by many people that no you know this cannot be done or this is difficult this is a little bit my chance to try and do what I think I it's right What I think it's right is usually I get it from talking to people who and if I can make a difference to you in credit and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And I helped What are our principal what we stand for I think that will be a win. Chief executive job came up? Would you be up for it? I love you and create too much. Thank you so much. Thank you, Francine PERSON . You think of cutting edge technology at sea. You might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Cantina PERSON shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. I'm from shipping. Certainly not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement To help reduce the admissions from these well stocked maritime
And they move through when what thick spaces how do you treat them how do you track their career manage their career do you give them opportunity that's why I think we're very fortunate to touch when you try it I can have A young person from Bosnia GPE who start in the leading back in Bosnia GPE Does a tour into Germany GPE And then Skill PERSON set that has been refined goes back and it's a bank in Bosnia GPE not many groups can do that and I think that's one of the attraction but we have. Would you like most about being chief executive? Trying to make a difference I have been told by many people that no you know this cannot be done or Difficult A little bit my chance to try and do what I think I it's right what I think it's right as usual I get it from talking to people who and if I can make a difference to Uni Credit and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And a helped What are our principal what we stand for? I think that will be a win. Executive job came up. Would you be up for it? I love you and you create too much. Thank you so much. Thank you, Francine PERSON . Think of cutting edge technology at sea. You might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. From Tina Shooping PERSON is the key component of global trade about 80 or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. Of all the worlds this huge Three% GPE mean that sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Access the financial world on demand. Here from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars. Stocked early enough all these precious materials you were just mentioning and we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need.
Have been told by many people that no you know this cannot be done or this is difficult. This is a little bit my chance to try and do what I think I it's right. What I think it's right is usually I get it from talking to people who and if I can make a difference to you create and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And a helped What are our principal what we stand for? I think that will be a win. Executive job came up. Would you be up for it? I love you and create too much. I think so much. Thank you, Francine PERSON . When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. From Tina shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see at some point. But there's a significant unseen cost to the modern era of global commerce. I'm from shipping. Output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Access the financial world on demand. Hear from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Stocked early enough all these precious materials you were just mentioning and we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need. Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks for having us. We actually lived in the same dorm in college. Just a few years DATE apart. So, it's been almost a year since you took From Jeff PERSON CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to Unionizing Amazon ORG Warehouse your first Technology conference. Thank you. I wanna start with a quick report card.
To help reduce the emissions from these well stocked maritime behemoths. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars. Stocked early enough all these precious materials you were just mentioning and we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks for having us. Just found out we actually lived in the same dorm in college. So it's been almost a year since you took over From Jeff PERSON CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to unionize in Amazon ORG warehouse your first Technology conference. Thank you. I wanna start with a quick report card. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Later he passed the reins to Andy Jassie PERSON his long time top lieutenant the architect of one CARDINAL of the company's biggest Engines ORG , Amazon ORG web services Basils PERSON has stayed on as executive chair leaving Jassie to navigate a critical inflection point in amazon ORG 's history. Does the company manage market turmoil rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back? On this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Review ORG of Amazon ORG 's performance And we've got time later to to really dig in but quickly how would you grade Amazon ORG 's performance over the last year Customers DATE . I think we, you know, I'm not sure the right person agreed myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've done a lot of good And I and I think if you look at during the pandemic which really has extended till the early part of this year DATE you know so much of the PPE ORG and food and essential items and people equipping their home offices White from Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very
Financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Stocked earlier enough all these precious materials you were just mentioning and we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks. So it's been almost a year since you took over From Jeff PERSON our CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to Unionizing Amazon ORG Warehouse your first ORDINAL Bloomberg Thank you. I wanna start with a quick report car. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Later. The architect of one CARDINAL of the company's biggest profit Amazon ORG web services. Has stayed on his executive chair leaving Jassie to navigate a critical inflection point in Amazon ORG 's history. How does the company manage market turmoil rising inflation and regulatory scrutiny and a push by some warehouse workers Unionized all while keeping customers coming back. Joining me on this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE . I'd like you to grade Your view of Amazon ORG 's And we've got time later to to really dig in. But quickly how would you grade Amazon ORG 's performance over the last year DATE with Well, I think we, you know, I'm not sure the right person agreed myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've Lot of good. You know, and I think if you look at during the pandemic which really has extended till the early part of this year DATE , you know, so much as the PPE ORG and food and essential items and people equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2000 DATE We grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Never happened before but it was really hard to do that and we had to take the really big footprint of the filmment center footprint we built the first 25 years DATE of Amazon ORG and double it in 24 months DATE we built out that transportation network in just a couple of years DATE you know we nearly double the size of our workforce during that time and I think you saw it another Businesses, you know, AWS ORG is a really big part of helping And governments have a business continuity during the pandemic and So many companies and organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that transform So, what about investors? I mean, the stock is down significantly from a peak Obviously there's broader market term Yeah, I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, in in 2021 DATE through 37 CARDINAL year%, over year, you know, it's not a 74 1 billion dollars MONEY revenue. You run It's pretty unusual growth and we grew 58 CARDINAL
Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks. Lived in the same dorm in college Just a few years DATE apart. So, it's been almost a year since you took over From Jeff PERSON our CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to Unionizing Amazon ORG Warehouse your first ORDINAL Bloomberg Conference. Thank you. I wanna start with a quick report car. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO The architect of one CARDINAL of the company's biggest profit engines amazon web services Basils PERSON has stayed on as executive chair leaving Jassie to navigate a critical inflection point in Amazon ORG 's history. How does the company manage market Rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back Me PERSON on this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Your view of Amazon ORG 's And we've got time later to to really dig in but quickly how would you grade Amazon ORG 's performance over the last year DATE with Worse. Well, I think we, you know, I'm not sure the right person agreed myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've Are good. You know, and I think if you look at during the pandemic which really has extended till the early part of this year DATE , you know, so much as the PPE ORG and food and essential items and people equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Never happened before but it was really hard to do that and we had to take the really big footprint of fulfillment center footprint we built the first 25 years DATE of Amazon ORG and double it in 24 months DATE we built out that transportation network in just a couple years DATE you know we nearly double the size of our workforce during that time and I think you saw it another Businesses, you know, AWS ORG is a really big part of helping And governments have business continuity during the pandemic and So many companies and organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that transform So, what about investors? I mean, the stock is down significantly from a peak Obviously there's broader market term Yeah, I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, in in 2021 DATE through 37 CARDINAL year%, over year, you know, it's not a 74 1 billion dollars MONEY revenue run It's pretty unusual growth and we grew 58 CARDINAL year% over year in our advertising business. You know, it's a One 1 billion dollars MONEY revenue run rate business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE , but I think the real challenge for us there is on the car side and there have been several things Happened some of which are more controllable than others you know I think the part that's less control is really around inflation and I think we thought that inflation would start to attenuate in 20 CARDINAL To and with the war in Ukraine GPE it just went the other way and has significantly accelerated so the cost of trucking and line hall and ocean and air and fuels to substantially going up I think that will tenuate at some point. No one knows how long that'll take. I think the more controllable areas for us are really around fulfillment center capacity and productivity. It was taking about 24 months DATE to build new fulfillment centers during
In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Later he passed the rains to Andy Jassie PERSON his long time top lieutenant the architect of one CARDINAL of the company's biggest profit Amazon ORG web services Navigate PERSON a critical inflection point in amazon ORG 's history. Does the company manage market turmoil rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back? On this edition of Bloombrook Studio ORG 100 CARDINAL . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Review of Amazon's ORG And we've got time later to to really dig in but quickly how would you grade Amazon ORG 's performance over the last year Customers DATE . During the year DATE or not but I I'll give you my take. You know, I think with respect to customers, I think we've A lot of good. You know, and I think if you look at during the pandemic which really has extended till the early part of this year DATE , you know, so much of the PPE ORG and food and essential items and people equipping their home offices were bought from Amazon ORG and and you know, to scale the way we needed to. Remember, in 2000 DATE We grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate. I mean it's very it's unprecedented. It's never happened before. But it was really hard to do that. And we Take the really big footprint of the film and set our footprint we built the first 25 years DATE of Amazon ORG and double it in 24 months DATE we built out that transportation network and just a couple years you know we nearly double the size of our workforce during that time and I think you saw it another businesses AWS ORG is a really big part of helping Companies and governments have business continuity during the pandemic and So many companies in organizations in the last year DATE made the strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we've spent a lot of time helping them make that transform So, what about investors? I mean, the stock is down significantly from a peak Last year DATE obviously there's broader market term Yeah, I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, in in 2021 DATE through 37 CARDINAL year%, over year, you know, it's not a 74 CARDINAL bill Runway ORG business. It's pretty unusual growth and we grew 58 CARDINAL year% over year and our advertising business. You know, it's a 30 One 1 billion dollars MONEY revenue runway business. So, some businesses going really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE , but I think the real challenge for us there is on the cause side and there have been several things Happen. Some of which are more controllable than others. You know, I think the part that's less control was really around inflation and I think we thought that inflation would start to attenu In 2022 DATE . And with the war in Ukraine GPE , it just went the other way. It has significantly accelerated so the cost of trucking and line hall and ocean and air and fuel is just substantially going up. I think that will turn you into some point. No one knows how long that'll take. I think the more controllable areas for us are really around fulfillment center capacity and productivity. It was taken about 24 months DATE to build new fulfillment centers during the pandemic It's a weird to make decisions you know I made 2020 DATE in early 2021 DATE on how much demand we're gonna plan for and so you know we we end up with more capacity than we need right now and and there's a number of things that we're working on We've stopped building on properties where we don't need it yet and we've let a number of leases labs and not a small number, you know, both those things. We've had a lot of occasions in Where we've worked on productivity, made improvements, and we have a lot of clearly defined issues and I'm confident we're gonna get back to the right level of profitability. You are gonna sublease 30 1 million square feet QUANTITY of space. Is there a mistake in the ex Because of the horrible thing because you have to make these decisions.
You know to scale the way we needed to remember in 2020 DATE we grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Never happened before but it was really hard to do that and we had to take the really big footprint of the film and set our footprint. We built the first 25 years DATE of Amazon ORG and double it in 24 months DATE . We built out that transportation network in just a couple years DATE . You know we nearly double the size of our workforce during that time and I think you saw it another Businesses, you know, AWS ORG is a really big part of helping And governments have business continuity during the pandemic and So many companies and organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that transform So, what about investors? I mean, the stock is down significantly from a peak Last year DATE obviously there's broader market term Yeah, I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, in in 2021 DATE through 37 CARDINAL year%, over year, you know, it's not a 74 1 billion dollars MONEY revenue Business. It's pretty unusual growth and we grew 58 CARDINAL year% over year and our advertising business, you know, it's a One 1 billion dollars MONEY revenue run rate business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE , but I think the real challenge for us there is on the car side and there have been several things that have And some of which are more controllable than others. You know, I think the part that's less control was really around inflation and I think we thought that inflation would start to attenuate 2022 DATE . And with the war in Ukraine GPE , it just went the other way. It has significantly accelerated. So the cost of trucking and line hall and ocean and air and fuels to substantially gone up. I think that will tenuate at some point. No one knows how long that'll take. I think the more controllable areas for us are really around fulfillment center capacity and productivity. It was taken about 24 months DATE to build new fulfillment centers during the pandemic And so we're to make decisions you know I made 2020 DATE in early 2021 DATE on how much demand we're gonna plan for and so you know we we end up with more capacity than we need right now and and there's a number of things that we're working on We've stopped building on properties where we don't need it yet and we've let a number of leases labs and not a small number, you know, of both those things. We've had a lot of occasions in our history We've worked on productivity, made improvements, and we have a lot of clearly definitions and I'm confident we're gonna get back to the right level of profitability. You are gonna sublize 30 1 million square feet QUANTITY of space. Is there a mistake in the ex Because of the overbuilding. To make these decisions 2 years DATE in advance If you put yourself back in 2020 DATE where we were going 39% PERCENT your year DATE on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision and we made the decision to air on the side of our consumers and sellers. Now, how would you grade amazon ORG 's performance with employees, your colleagues, there has been some high profi Yeah I I think that And when I started in this gig we had just create a new leadership principle to strive to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my But I still think there are many areas that we can keep improving. You know, and I think you know, the first one I I'd mention is safety. You know, I think that you know, in our fulfillment centers, that is the top priority, and you know, when you get into the details, the numbers and outside of all the spin of it Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We are, we've identified kind of a top 100 CARDINAL list Of areas that we can be better at that we are just metronomically stepping through and so we made a lot of progress but we have a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. Slaying on.
You know in in 2021 DATE grew 37 CARDINAL year% over year and it's not a 74 1 billion dollars MONEY revenue run rate business it's pretty unusual growth and we grew 58 CARDINAL year% over year and our advertising business you know it's Two 1 billion dollars MONEY revenue runway business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE , but I think the real challenge for us there is on the car side and there have been several Have happened. Some of which are more controllable than others. You know, I think the part that's less control is really around inflation and I think we thought that inflation would start to Anyway in 2022 DATE and with the war in Ukraine GPE it just went the other way and has significantly accelerated so the cost of trucking and line hall and ocean and air and fuel is just substantially going up and I think that will tenuated some point no one knows how long that'll take I think the more controllable areas for us are really Hour and fulfillment center capacity and productivity. It was taken about 24 months DATE to build new fulfillment centers during the pandemic and so we had to make decisions, you know, mid 2020 DATE in early 2021 DATE on how much demand we're gonna plan for. And so, you know, we we end up with more capacity than we need And and there's a number of things that we're working on. We we've stopped building on properties where we don't need it yet and we've let a number of leases, labs, and not a small number, you know, both those things. We've had a lot of occasions in our history where we've worked Productivity made improvements and we have a lot of clearly define issues and I'm confident we're get back to the right level of profitability. You are gonna sublieze 30 1 million square feet QUANTITY of space. Is there a mistake in the ex Because of the horrible thing Have to make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39% PERCENT your year DATE on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision. We made the decision to air on the side of our consumers and sellers. Now, how would you grade amazon ORG 's performance with employees, your colleagues, there has been some high profi Yeah I I think that And when I started in this gig we had just create a new leadership principle described to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion. But I still think there are many areas that we can keep improving. You know, and I think you know, the first one I I'd mention is safety. You know, I think that you know, in our fulfillment centers, that is the top priority and you know, when you get into the details, the numbers and outside of all the spin of it all. You know, About average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We have, we've notified kind of a top 100 CARDINAL list of Of areas that we can be better at that we are just metronomically stepping through and so we've made a lot of progress but we've a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. Slow laying off 10% PERCENT of his stuff Jamie Diamond PERSON says he's preparing for an economic hurricane the World Bank ORG just slashed it's forecast for global growth How do you feel about the economic climate I wasn't planning on giving any guidance to the guy. But super bad or super super bad. I think there's some things released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline And if you believe that that equation's gonna flip at some point, which we do, I think it will it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few, obviously, in 25 years DATE that Amazon Customers ORG change their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we've a downturn that we have the potential to still grow. We have a road map that's, you know, to probably.
I think the more controllable areas for us are really around fulfillment center capacity and productivity it was taken about 24 months DATE to build new fulfillment centers during the pandemic And so we're to make decisions you know I made 2020 DATE in early 2021 DATE on how much demand we're gonna plan for and so you know we we end up with more capacity than we need right now and and there's a number of things that we're working on We've stopped building our properties where we don't need it yet and we've let a number of leases lapse and not a small number, you know, both those things. We've had a lot of occasions Where we work on productivity, made improvements, and we have a lot of clearly to find initiatives and I'm confident we're gonna get back to the right level profitability. You are gonna sublease 30 1 million square feet QUANTITY of space. Is there a mistake in the Because of the horrible You have to make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39% PERCENT your year DATE at a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision and we made the decision to air on the side of our consumers and sellers. Now, how would you grade Amazon ORG 's performance with employees, your colleagues, their husbands, some high pro Yeah I I think that And when I started in this gig we had just create a new leadership principle to strive to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my But I still think there are many areas that we can keep improving. You know, and I think Yo PERSON , the first ORDINAL one I I mentioned is safety. You know, I I think that you know, in our fulfillment centers, that is the top priority and you know, when you get into the details, the number is an outside of all the spin of it all. You know, we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We have, we've identified kind of a top 100 CARDINAL list of Areas that we can be better at that we are just metronomically stepping through and so we made a lot of progress but we have a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. Tesla laying off 10% PERCENT of his Jamie Diamond PERSON says he's preparing for an economic hurricane. The World Bank ORG just slashed its forecast for global growth. How do you feel about the economic climate I wasn't planning on giving any guidance to the guy. But super bad or super super bad. I think there's some things that are released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline. And if you believe that that equation's gonna flip at some point, which we do, I think it will it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few, obviously, in the 25 years DATE At Amazon ORG . Customers changed their habits and so you know I also think there's you know those two CARDINAL reasons those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow up we have a road map that's you know Probably 3 to 5 years DATE long and we're gonna continue to invent Continue GPE to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. No, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been overvalued and this also course matters to employees who are Paid ORG in stock. You know, look, I've haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public I have never tried to predict what the stocks gonna do in anytime I've tried to a little bit I've been wrong so you know I think it's it's pretty hard to Hard to predict what's gonna be in any short period of time. I do really believe that Benjamin PERSON , you know, that Benjamin Graham Maxim PERSON that in the short term, the stock market tends to be a voting machine in the long term.
Level profitability. You are gonna sublease 30 1 million square feet QUANTITY of space. Is there a mistake in the execution Because of the overbuilding. Make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision and we made the decision to air on the side of our consumers and sellers. Now, how would you grade Amazon ORG 's performance with employees, your colleagues, their husbands, some high pro Yeah I I think that And when I started in this gig we had just create a new leadership principle to strive to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion. But I still think Many areas that we can keep improving. You know, and I think Yo PERSON the first one I I mentioned is safety you know I I think that you know in our fulfillment centers that is the top priority and you know when you get into the details the numbers and outside of all the spin of it all you know we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We are we've notified kind of a top 100 CARDINAL list of Areas that we can be better at that we're just metronomically stepping through and so we've made a lot of progress but we've a lot of work just still. Ela must just came out saying he has a super bad feeling about the economy. Tesla laying off 10% PERCENT of his staff Jamie Diamond PERSON says he's preparing for an economic hurricane. The World Bank ORG just slashed its forecast for global growth. How do you feel about the economic climate I wasn't planning on giving any guidance to the guy. But super bad or super super bad. I think there's some things that are released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline. And if you That that equation's gonna flip at some point which we do. I think it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few obviously in the 25 years DATE that Customers ORG changed their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow. We have a road map that's, you know, Probably 3 to 5 years DATE long and we're gonna continue to invent. We're You need to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. No, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has text just been over valued and this also course matters to employees who are Paid ORG in stock. You know, look, I've haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public I have never tried to predict what the stocks gonna do and anytime I've tried to a little bit I've been wrong so you know I think it's it's pretty hard to Hard to predict what's gonna be in any short period of time. I do really believe that Benjamin PERSON , you know, that Benjamin Graham Max PERSON and that in the short term, the stock market tends to be a voting machine in the long term. It tends to be a weighing machine. I think if you, you know, we've been through a lot of points 25 years DATE to be at Amazon ORG The macro factors are off and Stocks are down. Our stock is down. You can't really control that. You know, we have a concept we talk about a lot of Amazon ORG , You know in the ultimate output for a company share price you know and then other big outputs of free cash flow or profit or revenue you can't Manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns for investors.
Metronomically stepping through and so we made a lot of progress but we have a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. Tesla laying off 10% PERCENT of his staff Jamie Diamond PERSON says he's preparing for an economic hurricane the World Bank ORG just slashed it's forecast for global growth How do you feel about the economic climate I wasn't planning on giving any guidance Please Super ORG bad or super super bad. I think there's some things that are released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline. And if you believe that that equation's gonna flip at some point, which we do, I think it will it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few obviously in the 25 years DATE that I've Customers changed their habits and so you know I also think there's you know those two CARDINAL reasons those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow we have a road map that's you know Probably 3 to 5 years DATE long and we're gonna continue to invent. We're Continue to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. No, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been overvalued and this also course matters to employees who are Paid ORG in stock. You know, look, I've haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public I have never tried to predict what the stocks gonna do in anytime I've tried to a little bit I've been wrong so you know I think it's a pretty hard Hard to predict what's gonna be in any short period of time. I do really believe that Benjamin PERSON , you know, that Benjamin Graham Maxim PERSON that in the short term, the stock market tends to be a voting machine in the long term. It tends to be a weighing machine. I think if you, you know, we've been A lot of points in 25 years DATE at Amazon ORG The macro factors are off and Stocks are down. Our stock is down. You can't really control that. You know, we have a concept we talked about a lot at Amazon ORG . You know, in the ultimate output for a company, a share price, you know, and then other big outputs or free cash flow or profit or revenue. You can't Manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns for investors and I expect that we true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how? People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with Work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest ambassadors in the world. The people that I would like to have managing my money. At the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure for something As universally important to human life as sleep mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understanding It's easy to memorize that makes you smart if you can When and how and why to use that information And that's what you bring.
We have the potential to still grow. We have a road map that's, you know, probably 3 to 5 years DATE long and we're gonna continue to invent. We're gonna continue to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. Now, when it comes to the stock as I mentioned, it has Significantly NORP . Do you think investors are missing something or has tech just been overvalued? And it's also of course matters to employees who are Paid ORG in stock. You know, look, I've haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public. I have never tried to predict what the stocks gonna do in anytime I've tried to a little bit. I've been wrong. So, you know, I think it's it's pretty hard to Pretty hard to predict what's gonna be in any short period of time. I do really believe that Benjamin, Benjamin Graham ORG , Maxim PERSON , that in the short term, the stock market tends to be a voting machine in the long term intense to be a weighing machine. I think if you, you know, we Through a lot of points Years DATE to be and Amazon ORG The macro factors are off and Stocks are down. Our stock is down but you can't really control that. You know, we have a concept. We talked about a lot of Amazon ORG . Words and outputs you know in the ultimate output for a company a share price you know and then other big outputs or free cash flow or profit or revenue you can't Manage the outputs. You have to manage it. The input level. And that's where we spend all our time and so if you do the right things for the business long term, things tend to work out. I think we've had very good returns for investors and I expect that to be true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find On Bloomberg Wealth I'm gonna take you to meet the greatest ambassadors in the world the people that I would like to have managing my money at the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey guys crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. For something as universally important to human life as Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding It's easy to memorize that makes you smart if you can Act a lot of facts but if you wanna be wise you really want wisdom you gotta know when and how and why to use that information Should you bring figures out while you're sleeping? What are the moonshots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is Astro PERSON the home roll better is it something else Well you know we have a unique way that we look at big new investments and I'm not sure it's right or wrong it just happens to be our way and we ask ourselves when we're considering something four CARDINAL questions we we ask If it's successful can it be big and move the needle in Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have carpets there if not can we acquire quickly if we like the answer those questions we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation investments that seem pretty obvious like you know when I got to that company was Only retailer and then we expanded to music and video electronics and the obvious people. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something
Who really believe that Benjamin it had Benjamin Graham Maxim PERSON that in the short term the stock market tends to be a voting machine in the long term it tends to be a weighing machine I think if you you know we've been through a lot of points 25 years DATE to be at Amazon ORG The macro factors are off and Stocks are down. Our stock is down. You can't really control that. You know, we have a concept we talked about a lot at Amazon ORG . And outputs you know in the ultimate output for a company a share price you know and then other big outputs or free cash flow or profit or revenue you can't Manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns for investors and I expect that to be true Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors The people that I would like to have managing my money that the start of the internet revolution I picked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey Facebook crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs cure. Universally important to human life asleep mystery surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harness to further expand our It's easy to memorize that makes you smart. It can spit back a lot of facts. But if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what your brain figures out while you're sleeping. What are the moonshots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is Astro PERSON the home robot is it something else Well you know we have a unique way that we look at Big new investments and I'm not sure it's right or wrong. It just happens to be our way. And we ask ourselves when we're considering something. Four CARDINAL questions. We we ask If it's successful it can be big and move the needle in Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have confidence there if not can we acquire quickly if we like the answer to those questions we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation investments that seem pretty obvious like you know when I got to that company was Only retailer and then we expanded to music and video electronics and obvious people. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something that people externally and internally thought was a little bit nutty at the time Just imagine what Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments from making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see amazon strategy as fundamentally different Netflix GPE in Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers.
Manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns for investors and I expect that to be true Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with The best investors you can find from Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey guys crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. For something as universally important to human life as Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harness to further expand our understanding It's easy to memorize that makes you smart if you can Act a lot of fact but if you wanna be wise you really want wisdom you gotta know when and how and why to use that information Should you bring figures out while you're sleeping? What are the moonshots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it Astro GPE the home robot or is it something else? Well you know we have a unique way that we look at big new investments and I'm not sure it's right or wrong it just happens to be our way and we ask ourselves when we're considering something four CARDINAL questions we we ask If it's successful can it be big and move the needle in Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have carpets there if not can we acquire quickly if we like the answer those questions we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation investments that seem pretty obvious like you know when I got to the company was Only retailer and then we expanded to music and video electronics and obvious people. Other times that process does not lead to investments to seem obvious to people. I mean AWS ORG was something that people externally and internally thought was a little bit nutty at the time. But just And what Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments we're making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Netflix GPE and Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers who are, you know, get that entertainment for free by being Of prime and and so we've a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show reacher earlier in the year DATE was a huge hit we you know we had Hazel PERSON season we we just launched the boys season which is are you a big boys fan? Is Amazon Vott ORG ? It's very good. Of course we've go to the rings coming up you know in Thursday DATE at football. So, I'm very bullish about it. We also, We're excited about what we've done with MGM ORG you know I think some of the assets they're
Hey When and how and why to use that information? And that's what your brain figures out while you're sleeping. What are the moon shots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is Astro PERSON the home robot is it something else Well you know we have a unique way that we look at Big new investments and I'm not sure it's right or wrong. It just happens to be our way. And we ask ourselves when we're considering something. Four CARDINAL questions. We we ask If it's successful it can be big and move the needle in Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have confidence there? If not, can we acquire quickly? If we like the answer to those questions, we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation, investments that seem pretty obvious like, you know, when I got to that company was Only retailer and then we expanded to music and video electronics and the obvious people. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something that people externally and internally thought was a little bit nutty at the time but just Imagine ORG what Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments from making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see amazon strategy as fundamentally different Netflix GPE in Disney and if so how? Very bullish on it and remember we all the all the miles are a little bit different but for prime video we have 200 1 million MONEY plus prime subscribers who are you know get that entertainment for free by Of prime and and so we have a little bit different pricing model than some of the others but I I'm incredibly encouraged but what we have coming if you if you look at me we launched the show Reacher earlier in the year DATE was a huge hit we you know with Nasal season we we just launched the boys season which is are you a big boys fan Voicemail. Very good. Of course, we have go to the rings coming up, you know, in Or Thursday DATE at football. So, I'm very bullish about it. We also, you know, we're excited about what we've done with MGM ORG . You know, I think some of the assets there will go very well with the rest of what we Entertainment wise. So, if you look at Warner Brothers Discovery ORG in Paramount Stars in Global. They're building really significant subscription businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant Three CARDINAL business which is you know early stages for us I I'm excited about Kyper FAC which is our low earth orbit satellite that we're building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about how different World LOC is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . It'll building the world's best personal assistant. You know 200 1 million MONEY Already that are using Alexa ORG we're clearly onto something there and then you are automas driving ride healing Zooks that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that also is a Be really significant business. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different companies just like we were when AWS Came ORG successful. So, I think they're very worthwhile investments and bets and I'm optimistic about them. You didn't mention Astro Hey Robots PERSON gonna be feeling right It's not really widely available for sale what's No.
To music and video electronics and the obvious people. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something that people externally and internally thought was a little bit nutty at the time. But just imagine what Amazon ORG would be today DATE without Us GPE and and I think that you see the same thing here you know the there are so many significant investments from making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Netflix GPE and Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers who are, you know, get that entertainment for free by Part of a prime and and so we've a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show Richard PERSON earlier in the year DATE was a huge hit we you know we Mazels season we we just launched new boy season which is are you a big boys fan Hey Facebook It's very good. Of course, we've go to the rings coming up, you know, in September DATE In a football. So, I'm very bullish about it. We also, you know, we're excited about what we've done with MGM ORG . You know, I think some of the assets there will go very well with the rest of of what we're doing entertainment wise. So, if you look at Warner Brothers Discovery ORG in Paramount Stars and Global. They're building really Subscription businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant grocery business which is, you know, early stages for I I'm excited about Kyper FAC which is our low earth orbit satellite that were building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about how different World LOC is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . You're building the world's best personal assistant. We have, you know, 200 1 million MONEY So ready that are using Alexa ORG we're clearly onto something there and and then you are our timer is driving ride healing Zooks that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that also is a Be really significant. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different companies just like we were when AWS Came ORG successful. So, I think they're very worthwhile investments and bets and I'm optimistic about them. You didn't mention Astro Hey alexa Our home robots gonna be feeling right It's not really widely available for sale what's I hope you get one. Okay. Thank you Everyone's very curious about Jeff PERSON 's role these days DATE . What kind of executive chair he really is. He said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside it looks like he's Focusing on philanthropy. He's focusing on space. What kind Executive chairman is he What you know Jeff PERSON has always gonna be involved and he has you know Very lucky to have been in Amazon ORG for 25 years DATE . I feel very lucky to have worked directly for Jeff PERSON . For 20 CARDINAL of them. And we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and how important is the optimize for customers and how high standards they need to be You know given how easy it is for people to switch and the importance of invention and speed and so you know I just feel very lucky to have had the chance to work so closely with them. So is your relationship? I mean he was your only boss Is your relationship Mentally different than it was when you were the head of Every single job you have, the relationship is different. You know, remember, my
Remember we all the all the miles are a little bit different but for prime video we have 200 1 million MONEY plus prime subscribers who are you know get that entertainment for free by being Of prime and and so we have a little bit different pricing model than some of the others but I I'm incredibly encouraged but what we have coming if you if you look at me we launched the show Richard PERSON earlier in the year DATE was a huge hit we you know we had Nasal season we we just launched the boys season which is are you a big boys fan Voicemail. Very good. Of course, we have go to the rings coming up, you know, in Or Thursday DATE at football. So, I'm very bullish about it. We also, you know, we're excited about what we've done with MGM ORG . You know, I think some of the acids there will go very well with the rest of Doing entertainment wise. So, if you look at Warner Brothers Discovery ORG in Paramount Stars in Global, they're building really significant subscription businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build Grocery business which is you know, early stages for us. I am excited about Kyper FAC which is our low earth orbit satellite that we're building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about how World LOC is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . It'll building the world's best personal assistant. We have it, you know, 200 1 million QUANTITY endpoints already that are using Alexa ORG . We're clearly onto There and then you are our timers driving right healing Zooks that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that also is a Be really significant business. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different companies just like we were when AWS Came ORG successful. So, I think they're very worthwhile investments and bets and I'm optimistic about them. You didn't mention Astro Hey Robots Where PERSON is it? It's not really widely available for sale. What's I hope you go one. Okay. Thank you. Everyone's very curious about Jeff PERSON 's role. These days DATE , what kind of executive chair he really is. He said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside, it looks like he's Focusing on philanthropy. He's focusing on space. What kind Executive chairman is he? Jeff PERSON is always gonna be involved and he has you know I I'm I feel very lucky to have been in Amazon ORG for 25 years DATE I feel very lucky to have worked directly for Jeff PERSON for 20 CARDINAL of them and we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and how important is the optimize for customers and how high standards they need to be you know given how easy it is for people to switch The importance of invention and speed and so you know, I just feel very lucky to have had the chance to work so closely with him. So, is your relationship? I mean, he was your only boss for Is your relationship To lead different than it was when you were the head of. Yeah. Of course, you know, every single job you have, the relationship is different. You know, remember, it might the first couple years DATE I work for Jeff PERSON . I work is what we call the shadow then, what's really like achieve the staff That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and and it's different when I'm in the CEO role but you know the constant has always been that Great relationship and we collaborate really well. Amazon ORG is poised to become the biggest private sector employer in the Second ORDINAL only right now Walmart ORG is is in that spot But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse. I know you've been spending a lot of time at warehouses When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired pulled off this union vote what's your message One like him. Your message to
On Thursday DATE night TIME football. So, I'm very bullish about it. We also, you know, we're excited about what we've done with MGM ORG . You know, I think some of the acids there will go very well with the rest of of what we're doing Team of wise. So, if you look at Warner Brothers Discovery ORG in Paramount Stars and Global. They're building really significant subscription businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant Three CARDINAL business which is, you know, early stages for us. I I'm excited about Kiper ORG which is our low earth orbit satellite that we're building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about how different World LOC is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . You're building the world's best personal assistant. We have it, you know, 200 1 million MONEY That are using Alexa ORG we're clearly onto something there and and then you are our timers driving ride healing Zooks that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that also is a Be really significant visit. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different companies just like we were when AWS Came ORG successful. So, I think they're very worthwhile investments and bets and I'm optimistic about it. You didn't mention Astro Hey Robots PERSON Yet where is it? Yeah. It's not really widely available for sale. What's I hope you get one. Okay. Thank you Everyone's very curious about Jeff PERSON 's role these days DATE . What kind of executive chair he really is. He said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside it looks like he's really Kissing PERSON on philanthropy. He's focusing on space. What kind Executive chairman is he What you know Jeff PERSON has always gonna be involved and he has you know All very lucky to have been in Amazon ORG for 25 years DATE . I feel very lucky to have worked directly for Jeff PERSON . For 20 CARDINAL of them. And we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and how important is the optimize for customers and how high standards they need to be You know given how easy it is for people to switch and the importance of invention and speed and so you know I just feel very lucky to have had the chance to work so closely with them. So, is your relationship? I mean, he was your only boss Is your relationship Mentally different than it was when you were the head of Every single job you have, the relationship is different. You know, remember, might the first couple years DATE I work for Jeff PERSON , I work is what we call the shadow then, what's really like achieve the staff and That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and it's different when I'm in the CEO role but you know the constant has always been that we Relationship LOC and we collaborate really well. Amazon ORG is poised to become the biggest private sector employer. In the world. Second ORDINAL only, right now, Walmart ORG is is in that spot. But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse. I know you've been spending a lot of time at warehouses When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired, pulled off this union vote. What's your message to Like him. Your message to the folks who think maybe we should join a union. I know I think that in the first thing to be clear about is that employees get to make that choice where they wanna have a junior or not. They always have had that choice and it continues to be their choice and you know, we happen to think they're better off without a union for a number of reasons. Including the fact that, you know, it's it's much harder when you Union to have a direct relationship with your manager Get things done quickly. So, if you see something on the line that you think could be better for Team or you or your or customers Just go to your manager and say let's change it. You know, there's a whole process in in bureaucracy that you have.
So obviously the power Robots NORP . Where is it? No. It's not really widely available for sale. What's I hope you go one. Okay. Thank you. Everyone's very curious about Jeff PERSON 's role. These days DATE , what kind of executive chair he really is. He said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside, it looks like he's Focusing on philanthropy. He's focusing on space. What kind Executive chairman is he? Jeff PERSON is always gonna be involved and he has you know I I'm I feel very lucky to have been in Amazon ORG for 25 years DATE I feel very lucky to have worked directly for Jeff PERSON for 20 CARDINAL of them and we have AA really close relationship and have for a long time and I think we share a lot of same values about customers and how important is to optimize for customers and how high standards they need to be you know given how easy it is for people to switch The importance of invention and speed and so you know I just feel very lucky to have had the chance to work so closely with him. So is your relationship? I mean he was your only boss for 5 years DATE , right? Is your relationship To lead different than it was when you were the head of. Yeah. Of course, you know, every single job you have, the relationship is different. You know, remember, the first couple years DATE I work for Jeff PERSON , I work is what we call the shadow then, what's really like achieve the staff That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and and it's different when I'm in the CEO role but you know the constant has always been that we have Relationship LOC and we collaborate really well. Amazon ORG is poised to become the biggest private sector employer in the Right now Walmart ORG is is in that spot But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse. I know you've been spending a lot of time at warehouses When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired pulled off this union vote what's your message One like him. Your message to the folks who think maybe we should join a union. I know I think that in the first thing to be clear about is that employees get to make that choice where they wanna have a union or not. They always have had that choice and it continues to be their choice and you know, we happen to think they're better off without a union for a number of reasons. Including the fact that, you know, it's it's much harder when you Union to have a direct relationship with your manager and to get things done quickly. So, if you see something on the line that you think would be better for your your team or you or your or customers, Can't just go to your manager and say, let's change it. You know, there's a whole process in in bureaucracy that you have to Through to be able to do that. You know, and and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bring up weed much rather here from every employee. Whatever is on their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time. You have to Really competitive benefits and then I think if you look at Amazon ORG 's they're very unusual in this space we champion the $ 15 MONEY minimum wage several years ago DATE The starting salary is now over $ 18 MONEY an hour which you know Is more than double the federal minimum wage. You get full, health insurance, and 401 CARDINAL K, and 20 weeks DATE , up to 20 weeks DATE of parental leave, and if you wanna get a college education, you haven't had one, we've a career choice Program. The website associates be able to do so. That is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our our employees and we need to You to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously. What is the mark that you want to make Still.
Fundamentally different than it was when you were the head of Every single job you have, the relationship is different. You know, remember might the first couple years DATE I work for Jeff PERSON , I work is what we call the shadow then what's really like the cheapest staff That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and and it's different when I'm in the CEO role but you know the cost and has always been that we have a great Ship and we collaborate really well. Amazon ORG is poised to become the biggest private sector employer in the Second ORDINAL only right now Walmart ORG is is in that spot But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse. I know you've been spending a lot of time at warehouses. When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired, pulled off this un ORG What's your message to someone like him? Your message to the folks who think maybe we should join a union. I know, I think that in the first thing to be clear about is that employees get to make that choice where they wanna have a union or not. They always have had that choice and it continues to be their choice and you know, we happen to think they're better off without a union for a number of reasons. Including the fact that, you know, it's it's much harder when you Union to have a direct relationship with your manager and to get things done quickly. So, if you see something on the line that you think could be better for your your team or you or your or customers, Yeah, just go to your manager and say, let's change it. You know, there's a whole process in in bureaucracy that you have to Fruit to be able to do that. You know, and and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bringing up and we'd much rather hear from every employee. Whatever is on their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time. You have to Really competitive benefits and then I think if you look at Amazons they're very unusual in this space we champion the $ 15 MONEY minimum wage several years ago DATE The starting salaries now over $ 18 MONEY an hour which you know Is more than double the federal minimum wage. Four CARDINAL health insurance in 401 CARDINAL K and 20 weeks DATE up to 20 weeks DATE of parental leave and if you wanna get a college education you haven't had one we've a career choice program that let's our Center associates be able to do so. That is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our our employees and we need to You to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously What is the mark that you want to make Still. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. The FTC ORG has revamped its anti trust.
Someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired, pulled off this union vote. What's your message One like him. Your message to the folks who think maybe we should join a union. I know I think that in the first thing to be clear about is that employees get to make that choice where they wanna have a junior or not. They always have had that choice and it continues to be their choice and you know, we happen to think they're better off without a reunion for a number of reasons. Including the fact that, you know, it's it's much harder when you Union to have a direct relationship with your manager and to get things done quickly. So, if you see something on the line that you think could be better for your your team or you or your or customers, Can't just go to your manager and say let's change it. You know, there's a whole process in in bureaucracy that you have to Through to be able to do that. You know, and and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bring up and we'd much rather hear from every employee. Whatever is on their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time. You have to Really competitive benefits and then I think if you look at Amazon ORG 's they're very unusual in this space we champion the $ 15 MONEY minimum wage several years ago DATE The starting salaries now over $ 18 MONEY an hour which you know is is more than double the federal minimum wage. You get full health insurance and 401 CARDINAL K and 20 weeks DATE up to 20 weeks DATE of parental leave and if you wanna get a college education, you haven't had one Career choice program that let's our fulfillment center associates be able to do so. That is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our arm please and we need to You to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark. On Amazon ORG with AWS ORG obviously. What is the mark that you want to make Still. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. Into Amazon ORG and buy some accounts is Are you preparing for an anti-trust lawsuit from the FTC ORG ? It's growing as to significant extent like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if if somebody you look We will stand up to that scrutiny and I you know I think that's what we've tried to do in running the business. We can't control You know whether organizations bring different suits against us but I think if you look at our business, if you actually look at the fact, if you take out of, you know, take out of the equation that they're they're may not be the most Objective, you know, leadership when it comes to Amazon ORG and that organization If you look at the facts.
You think it'd be better for your your team or you or your or customers you can't just go to your manager and say let's change it you know there's a whole process in in bureaucracy that you have Through to be able to do that. You know, and and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bring up and we'd much rather hear from every employee. On their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time, you have to have really competitive benefits and then, I think if you look at Amazons DATE , they're very unusual in this space. We champion the $ 15 MONEY minimum wage several years ago DATE . Starting salaries now over $ 18 MONEY an hour which you know is is more than double the federal minimum wage. You get full health insurance and 401 CARDINAL K and 20 weeks DATE up to 20 weeks DATE of parental leave and if you wanna get a college education, you haven't had one CARDINAL Your choice program that let's our fulfillment center associates be able to do so. That is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our our employees and we need You to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously. Mark that you want to make but still David Weston PERSON . Information at insight. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. The FTC ORG has revamped its anti trust inquiry into Amazon ORG and by some accounts is Celebrating it. Are you preparing for an anti-trust lawsuit from the FTC ORG ? It's growing. It's too significant like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if if somebody look, that we would stand up to that scrutiny and I you know, I think What we tried to do in running the business. We can't control what, you know, you know, whether organizations bring different suits against us but I think if you look at our business, if you actually look at the, if you take out You know take out of the equation that they're they're may not be the most objective you know leadership when it comes to Amazon ORG and that organization if you look at the facts you know in our retail business we're about one% ORG of the worldwide retail market segment And remember 85% PERCENT of it is still offline And if you look in our AWS business You know about depending on how you measure it 95% PERCENT of the worldwide global IT Span is on premises you know and then we have a cloud business and then we have a portion of that you know we were leading market segment share in the cloud part of this We operate you know who we compete with NWS ORG is really on premises IT in addition to the clouds so you know these are relatively small percentages of Entire pie and you can kinda step through all the businesses and I
We find David Weston PERSON . Yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Television and radio TC as revamped. It's anti trust inquiry into Amazon ORG and by some accounts is Are you preparing for an anti-trust lawsuit from the FTC ORG ? If you are a large company, it's growing. It's too significant like we have You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that in mind and knowing that if if somebody look, that we would stand up to that scrutiny and I you know, I think What we tried to do in running the business. We can't control what, you know, you know, whether organizations bring different suits against us but I think if you look at our business, if you actually look at If you take out of you know take out of the equation that they're they're may not be the most objective you know leadership when it comes to Amazon ORG and that organization if you look at the facts you know in our retail business we're about one% ORG of the worldwide retail market segment share and remember 85% PERCENT of it is still offline And if you look in our AWS business You know about to be how you measure it 95% PERCENT of the worldwide global IT Spanish NORP on premises you know and then we have a cloud business and then we have a portion of that and we were leading market segment share in the cloud part of this We operate, you know, who we compete with is really on premises. IT in addition to the clouds. You know these are relatively small percentages of of the entire pie and you can kinda step through all the businesses and I think simply because you've been successful In a few different businesses doesn't somehow mean that you have a natural market power it just means you've been successful in a couple different Experiences but we still have AA relatively small amount of market segment share in those areas. What about the SEC ORG or being sued by them over third ORDINAL party data and how you used it? Do you think in the past Amazon ORG made mistakes with letting employees inter How those third ORDINAL party Sally PERSON sellers were doing? Pretty good control. I mean, you know, we've course disagree with the premise. Of that, but I would say that we have very good controls with respect to the data that the different employees that are able to see and by the way I think that we can be better for sellers. You know, I I think that We can have better tools from the get started. We give better tools from the manage what they're doing. Across their their different Amazon ORG units. I think we can communicate better. There's a whole bunch of things we can do better. And we agonize over every single email or communication we get from sellers. We do Regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with Amazon ORG and I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes what's Sellers don't really long for e-commerce software that exist in lots of places And it is not very expensive what they look
The FTC ORG has revamped its anti trust inquiry into Amazon ORG By some accounts is Tolerating it. Are you preparing for an anti-trust lawsuit from the FTC ORG ? If you are a large company, it's growing as to significant extent like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if if somebody look, We will stand up to that scrutiny and I you know I think that's what we've tried to do in running the business. We can't control what, you know, you know, whether organizations bring different suits against us but I think if you look at our business, if you actually look at the fact, if you take out You know take out of the equation that they're they're may not be the most objective you know leadership when it comes to Amazon ORG in that organization if you look at the facts You know, in our retail business, we're about one% ORG of the worldwide retail market segment share And remember 85% PERCENT of it is still offline and if you look in our AWS business You know about to be how you measure it 95% PERCENT of the worldwide global IT Span is on premises you know and then we have a cloud business and then we have a portion of that you know we have a leading market segment share in the Part of this but we operate you know who we compete with NAWS ORG Really on premises IT in addition to the clouds so you know these are relatively small percentages of of the entire pie and you can kinda step through all the businesses and I think simply because you've been successful in a few different businesses doesn't somehow mean that you have a natural market power it just means you've been Won a couple different customer experiences but we still have a relatively small amount of market segment share in those areas. What about the SEC ORG ? You're being sued by them over third ORDINAL party data and how you've used it. Do you think in the past Amazon ORG made mistakes with letting employ Internally see how those third ORDINAL party sellers were doing. Pretty good control. I mean, we, you know, we've course disagree with the premise of that but I would say that we have very good controls with respect to the data that the different employees since we're able to see and by the way, I think that we can be better for sellers. You know, I I think that Yeah we can have better tools from the get started we get better tools from the manage what they're doing across their their different Amazon Units ORG . I think we can communicate better. There's a whole bunch of things we can do better. And we agonize over every single email or communication we get from sellers. We do very regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with On and I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes what's Sellers don't really For e-commerce software. That exists in lots of places It is not very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of the businesses they're building. So, we have a lot of work to do there like we do in a lot of other places I think we were very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still a really, you know, significant issue All sorts of businesses. We have worked really hard to open a lot more. Points of presence and ports and the increase our capacity in getting products in, but I think it's gonna be something that companies battle with for some time You made a huge mark On Amazon ORG with AWS ORG obviously The mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era Well I I don't I don't really think of it that way Emily I mean I I don't think it's really about any jazzy era or anyone person you know and and
You know take out of the equation that they're they're may not be the most objective you know leadership when it comes to amazon and that organization if you look at the facts you know in our retail business we're about one% ORG of the worldwide retail market segment share And remember 85% PERCENT of it is still offline And if you look in our AWS business You know about depending on how you measure it 95% PERCENT of the worldwide global IT Span is on premises you know and then we have a cloud business and then we have a portion of that and we were leading market segment share in the cloud part of this We operate you know who we compete with NWS ORG is really on premises IT in addition to the clouds so You know, these are relatively small percentages of of the entire pine. You can kinda step through all the businesses and I think simply because you've been successful in a few different businesses, doesn't somehow mean that you have a natural market power. It just means you've been successful in a couple Customer experiences but we still have AA relatively small amount of market segment sharing those areas. What about the SEC ORG or being sued by them over third ORDINAL party data and how you've used it? Do you think in the past Amazon ORG made mistakes with letting employees in How those third ORDINAL party sellers were doing? Pretty good control. I mean, you know, we've course disagree with the premise. Of that, but I would say that we have very good controls with respect to the data that the different employees that are able to see and by the way, I think that we can be better for sellers. You know, I I think We can have better tools from the get started. We give better tools from the manage what they're doing. Across their their different Amazon Units ORG . I think we can communicate better. There's a whole bunch of things we can do better. And we agonize over every single email or communication we get from sellers. We do very regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with And I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes what's Sellers don't really long for e-commerce software. That exists in lots of places And it is not very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of the businesses they're building. So, we have a lot of work to do there like we do in a lot of other But I I think we were very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still a really, you know, Issue for all sorts of businesses. We have worked really hard to open a lot more. Points of presence and ports and the increase our capacity in getting products in, but I think it's gonna be something that companies battle with for some time. You made a huge mark. On Amazon ORG with AWS ORG obviously What is the mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era Well, I I don't I don't really think of it that way, Emily. I mean, I I don't think it's really about any jazzy era or anyone person, you know, and and and by the way, AWS ORG was not about anyone person. That you know, if you spend a time on AWS That is an unbelievable team. Not just an incredible leadership team which it is. But just top to bottom and then the number of inventors and people care about customers Operate NORP you know something where it has to work almost like a delta and it's it's always teams and so I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses 85% PERCENT of it still lives offline. Oh my god. I think we have a lot of upside and a lot of growth and I think as much invention as we've seen Last 25 years DATE you know the time I've been there I think it Small compared to the next 25 years DATE . There is a lot for us to include
This is IT in addition to the clouds. So, you know, these are relatively small percentages of of the entire pie and you can kinda step through all the businesses and I think simply because you've been successful In a few different businesses doesn't somehow mean that you have a natural market power. It just means you've been successful in a couple different Experiences but we still have AA relatively small amount of market segment sharing those areas. What about the SEC ORG ? You're being sued by them over third ORDINAL party data and how you've used it. Do you think in the past Amazon ORG made mistakes with letting Employees internally see How those third ORDINAL party sellers were doing? Pretty good control. I mean, we, you know, we've course disagree with the premise. Of that, but I would say that we have very good controls with respect to the data that the different employees that are able to see and by the way, I think that we can be better for sellers. You know, I I think You know we can have better tools from to get started we give better tools from the manage what they're doing across their their different Amazon ORG units I think we can communicate better there's a whole bunch of things we can do better and we agonize over every single email or communication we get from sellers and we do Regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with Amazon ORG and I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes what's Sellers don't really long for e-commerce software that exist in lots of places And it is not very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of the businesses they're building. So, we have a lot of work to do there like we're doing a lot of other places I think we were very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still a really, you know, significant issue All sorts of businesses. We have worked really hard to open a lot more. Points of presence and ports and the, and the increase our capacity in getting products in but I think it's gonna be something that companies battle with for some time You made a huge mark On Amazon ORG with AWS ORG obviously. Mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era Well, I I don't I don't really think of it that way, Emily. I mean, I I don't think it's really about any jazzier or anyone person, you know, and and and by the way, AWS ORG was not about anyone person. That you know, if you spend a time on AWS That is an unbelievable team. Not just an incredible leadership team which it is. But just top to bottom. And then the number of inventors and people care about customers Operate NORP you know something where it has to work almost like a delta. It's it's always teams. And so I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses 85% PERCENT of it still lives offline. Oh my god. I think we have a lot of upside and a lot of growth and I think as much invention as we've seen Last 25 years DATE , you know, the time I've been there, I think It's gonna work small compared to the next 25 years DATE . There is a lot for us to invent on behalf of customers. So, you know, I'm excited to be part of the team. It makes that happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we have a responsibility to do that and so you know it's it's it's a long journey and that we're working on but I'm excited to be part of it and you know, I For a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you.
Sellers don't really Or e-commerce software. That exists in lots of places It is not very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of the businesses So we have a lot of work to do there like we do in a lot of other places but I I think we are very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still a really, you know, significant For all sorts of businesses. We have worked really hard to open a lot more. Points of presence and ports and increase our capacity in getting products in, but I think it's gonna be something that companies battle with for some time. You made a huge mark. On Amazon ORG with AWS ORG obviously What is the mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era? Well, I I don't I don't really think of it that way, Emily. I mean, I I don't think it's really about any jazzy era or anyone person, you know, and and and by the way, AWS ORG was not about anyone person. That you know, if you spend a time on AWS That is an unbelievable team. Not just an incredible leadership team which it is. But just top to bottom. And then the number of inventors and people care about customers Operate NORP you know something where it has to work almost like a downtown it's it's always teams and so I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses 85% PERCENT of it still lives offline. Oh my god, I think we have a lot of upside, a lot of growth, and I think as much invention as we've seen Last 25 years DATE you know the time I've been there I think it Small compared to the next 25 years DATE . There is a lot for us to invent on behalf of customers and so, you know, I'm excited to be part of the team that makes it happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we were responsibly do that and so you know it's it's it's a long journey that we're working on but I'm excited to be part of it and you know I Order PERSON for a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you. Thank you. In the coming months DATE . From. Moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority.
Well, I I don't I don't really think of it that way, Emily. I mean, I I don't think it's really about an Andy Jassie PERSON era or anyone person. You know, and and and by the way, AWS ORG was not about anyone person. That you know, if you spend a time on AWS That is an unbelievable team. Not just an incredible leadership team which it is. But just top to bottom. And then the number of inventors and people care about customer Operate, you know, something where it has to work almost like a downtown. It's it's always teams and so, I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses Five% of it still lives offline. Oh my god. I think we have a lot of upside and a lot of growth and I think as much invention as we've seen Last 25 years DATE , you know, the time I've been there, I think Gonna work small compared to the next 25 years DATE . There is a lot for us to invent on behalf of customers. So, you know, I'm excited to be part of the team that makes that happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we were responsibly do that and so, you know, it's it's it's a long journey and that we're working on but I'm I'm excited to be part of it and you know, For a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Ken Griffin PERSON is moving both sit it out and send it all security is to Miami GPE let's go was broken by Bloomberg PERSON 's Why did the biggest names in business choose Bloomberg PERSON ? That is a great question. It's a great question. Great question. I'm glad you asked that. Know how to maneuver the machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert Up to 7 days DATE in advance if you're satellite's gonna come dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem.
Invention is we've seen Last 25 years DATE , you know, the time I've been there, I think it Looks small compared to the next 25 years DATE . There is a lot for us to invent. On behalf of customers and so, you know, I'm excited to be part of the team that makes that happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we have a responsibility do that and so you know it's it's it's a long journey that we're working on but I'm excited to be part of it and you know Departed for a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you. Andy Jackie PERSON , Sarah Vanathan PERSON . Do you see that? The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg She's PERSON a great question. Great question. A lot of the satellites have propulsion systems. They can kinda move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If your satelli Satellites around but it's it's sort of like a harder problem now. The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a clouded debris and now all the other satellites are flying through this whizzing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up You're watching the best of the cutter economic
No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE do you see that coming true 24 hours TIME a day. Bloomberg PERSON your global business authority. That is a great question. Great question. I'm glad you asked that. Know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert To 7 days DATE in advance if your satellite's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. Just because we've installed so much more hardware in the space. But you have a big collision that creates a clouded debris and now all the other satellites are flying through this whizzing mess of debris as we add all of the new satellites into space. The risks of the collision, the likelihood of the collisions going up. You're watching the best of the cutter economic forum. I manage cranny in Doha GPE . This week DATE 's event which was powered by Bloomberg PERSON brought together global business leaders and heads of state to tackle some of the world's most pressing challenges from small supply chains and escalating inflation to Russia GPE 's military assault on Ukraine GPE Over the next half hour TIME we'll bring you all the highlights from the most important interviews and conversations beginning with it on musk the world's richest person spoke to Bloomberg ORG 's editor in Chief John Mick PERSON His head kind plans at Tesla why he thinks a recession is inevitable Course is ongoing bid for Twitter PRODUCT .
Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE Why did the biggest names in business choose Bloomberg PERSON ? It's a great question. Hey Hey Facebook Know how to maneuver the machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in If your satellite's gonna come dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving satellites around but So much more hardware in the space. Are you have a big collision that creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the likelihood of the collisions going up You're watching the best of the cutter economic forum I manage cranny in Doha GPE this week DATE 's event which was powered by Bloomberg PERSON brought together global business leaders and heads of states to tackle some of the world's most pressing challenges from small supply chains and escalating inflation to Russia GPE 's military assault on Ukraine GPE Over the next half hour TIME we'll bring you all the highlights from the most important interviews and conversations beginning with Elon Musk PERSON the world's richest person spoke to Bloomberg ORG 's editor in Chief John McAthweight PERSON about his head kind plans at Tesla why you thinks a recession Is inevitable. With respect to the the Twitter PERSON transaction there's a limit to what I can say publicly given that is someone would have sensitive matter Measured in my responses here. Is not to generate incremental lawsuits Hey Facebook please Times ORG managed to overcome Yes I think importance. So Given you enough information. Well there are still a few unresolved matters you've you've probably read about the the question as to whether the number of fake and spam users on the system is less than five% as Twitter PERSON claims which I think is probably not most people's experience I'm reusing Twitter PRODUCT . So we're still waiting resolution on that matter. And that is a very significant matter. So We're waiting on that. And then of course, there is the question of will the the deck portion of the round, come together, and then will the Sheryl ORG 's vote in favor. So, I think those are the three CARDINAL things that stand in the You know if that needs to be resolved before the trans Wait. What about the general state of the economy? Does that weigh on you when you think about this? I mean you just described it. You have a super bad feeling about the economy. Are you still in that position? I've just set you earlier. Joe Biden PERSON Has just come out.
Dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. Just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the likelihood of the collisions going up You're watching the best of the cutter economic forum I manage cranny in Doha GPE this week DATE 's event which was powered by Bloomberg PERSON brought together global business leaders and heads of states to tackle some of the world's most pressing challenges from small supply chains and escalating inflation to Russia GPE 's military assault on Ukraine GPE Over the next half hour TIME we'll bring you all the highlights from the most important interviews and conversations beginning with it on musk World ORG 's richest person spoke to Bloomberg ORG 's editor in chief John McElth Waite PERSON about his head kind plans at Tesla why you thinks a recession is inevitable With respect to the the Twitter PERSON transaction there's a limit to what I can say publicly given that is someone with a sensitive matter So, To be measured in my responses here. Lawsuits Sometimes managed to overcome Yes, if that position minimization is I think important. Have you so have Twitter PERSON given you enough information? Well there are still a few unresolved matters you've you've probably read about the the question as to whether Number of fake and spam users on the system is less than five% as to reclaims. Which I think is probably not most people's experience. On when using Twitter PRODUCT . So we're still waiting resolution on that matter and that is a very significant matter. So We're we're waiting resolution on that. And then of course there is the question of will the the deck portion of the round come together and then will the shareholders vote in favor. So I think those are the three CARDINAL things that stand in the You know if that needs to be resolved before the trans Wait. What about the general state of the economy? Does that weigh on you when you think about this? I mean you just described it. You have a super bad feeling about the economy. Are you still in that position? I've just said you earlier. Joe Biden PERSON Has just come out and said that America GPE is not inevitable. How do you feel about the economy? Some point. Asked whether there is a reception in the near term I think that is more likely than not. It certainly isn't. It's not a certainty but It appears more likely than not What do you think I'm I'm I'm I'm with you. I think it's more likely Particular PRODUCT thing to do with the Twitter PERSON bid which is you know you are one of the And fastest growing investors in China GPE Tesla you've talked about it being a third You're now buying Twitter PRODUCT that kind of public forum for free speech. The Chinese NORP historically don't tend to be very enthusiastic about free speech are you worried Out whether you can keep those two CARDINAL particular horses running Is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP ? Well Twitter PERSON does not operate in
You watching the best of the cutter economic forum I manage cranny in Doha GPE this week DATE 's event which was powered by Bloomberg PERSON brought together global business leaders and heads of state to tackle some of the world's most pressing challenges from small supply chains and escalating inflation to Russia GPE 's military Salt GPE on Ukraine GPE . Over the next half hour TIME we'll bring you all the highlights from the most important interviews and conversations beginning with Elon Musk PERSON the world's richest person spoke to Bloomberg ORG 's editor in Chief John McAthweight PERSON about his head kind plans at Tesla why he thinks a recession is inevitable and of course it's With respect to the the Twitter PERSON transaction there's a limit to what I can say publicly given that is someone of a sensitive matter So, I would like to be measured in my responses here. Is not to generate incremental lawsuits. Hey Facebook Sometimes managed to overcome Yes, it it that position minimization is I think important. Have you so have Twitter PERSON given you enough information? Well there are still Result PERSON matters you you probably read about the the question as to whether Number of fake and spam users on the system is less than five% as Twitter PERSON claims. Which I think is probably not most people's experience. On reusing Twitter PRODUCT . So we're still waiting resolution on that matter. And that that is a very significant matter. So We're waiting on that. And then of course there is the question of will the the death portion of the round come together and then will the shareholders vote in favor. So I think those are the three CARDINAL things that stand in the You know, if that needs to be resolved before the trans Hey Facebook wait. What about the general state of the economy? Does that weigh on you when you think about this? I mean you just described it. You have a super bad feeling about the economy. Are you still in that position? I've just set you earlier. Joe Biden PERSON has just come out and said that A recession in America GPE is not inevitable. How do you feel about the economy Well I think it recession is inevitable at some point. Best weather there is a reception in the near term I think that is more likely than not. It's it certainly isn't this. It's not a certainty but Appears more likely than not. And what do you think I'm I'm I'm I'm with you. Which is you know you are one of the Western NORP fastest growing investors in China GPE Tesla you've talked about it being a third Free speech. The Chinese NORP historically don't tend to be very enthusiastic about free speech are you worried About whether you can keep those two CARDINAL particular horses running is is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP Well Twitter PERSON does not operate in China GPE so And I think China GPE is not a temporary Free speech of the press in the US GPE at as far as I know I I seem You're not under pressure to From China GPE . So, I think there's I I don't think this is gonna be an issue. And in terms generally of that issue of freedom of speech on Twitter PERSON you've talked about Twitter PRODUCT being making it even freeer and letting more people onto it Is there a limit at all to to who you think should be allowed onto Twitter PRODUCT ? My aspiration for Twitter PERSON or in in general for the digital town square would be that it is as if
Why you think a recession is inevitable With respect to the the Twitter PERSON transaction there's a limit to what I can say publicly given that is someone who was sensitive matter So, To be measured in my responses here. Is not to generate incremental lawsuits Hey Facebook sometimes manage to overcome Yes, it it that position minimization is I think important. So have Twitter PERSON given you enough information? Well there are still a few unresolved matters you've you've probably read about the the question as to whether Number of fake and spam users on the system is less than five% as to her claims. Which I think is probably not most people's experience. On when using Twitter PRODUCT . So we're still waiting resolution on that matter. And that is a very significant matter. So We're waiting resolution on that. And then of course there is the question of will the the deck portion of the round come together and then we'll be shareholders vote in favor. So I think those are the three CARDINAL things that stand in the You know if that needs to be resolved before the Complete PERSON . What about the general state of the economy? Does that weigh on you when you think about this? I mean you just described it. You have a super bad feeling about the economy. Are you still in that position? I've just said you earlier. Joe Biden PERSON Has just come out and said that America GPE is not inevitable. How do you feel about the economy? At some point. Ask whether there is a reception in the near term I think that is more likely than not. It's certainly isn't a it's not a certainty but It appears more likely than not What do you think I'm I'm I'm I'm with you. I think it's more likely Thing to do with the Twitter PERSON bid which is you know you are one of the And fastest growing investors in China GPE Tesla you've talked about it being a third You're now buying Twitter PRODUCT that kind of public forum for free speech. The Chinese NORP historically don't tend to be very enthusiastic about free speech are you worried Out whether you can keep those two CARDINAL particular horses running Is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP ? Well Twitter PERSON does not operate in Jeff PERSON so And I think HF Free PERSON speech In the US GPE at as far as I know I seem Messenger PERSON pressure to my blood to Got from China GPE so I think there's I I don't think this is gonna be an issue. And in terms generally of that issue of freedom of speech and Twitter PERSON you've talked about Twitter PRODUCT being making it even freer and letting more people onto it. Is there a limit at all to to who you think should be allowed onto Twitter PRODUCT ? My aspiration for Twitter PRODUCT or in general for the digital town square would be that it is as inclusive in in the water since the word as possible That is it is an appealing Assistant views. So, I mean, I do like to get like 80% PERCENT of That's it Most America GPE and perhaps I don't know half CARDINAL the world or something ultimately on On Twitter PERSON it's in one for another And that needs that means it must be something that was appealing to people. It it obviously came out of your place where they feel uncomfortable or harassed. Or there's something not use it. Can you set the record straight on one CARDINAL thing which is this issue about the layoffs? I Said PERSON initially.
You think about this I mean you just described it you have a super bad feeling about the economy are you still in that position I've just said to you earlier Joe Biden PERSON has just come out and said that Session in America GPE is not inevitable. How do you feel about the economy? Some point. Whether there is a reception in the near term I think that is more likely than that. It's it certainly isn't this. It's not a certainty but Appears more likely than not. What do you think I'm I'm I'm I'm with you I think it's more likely Can I ask you one particular thing to do with the Twitter PERSON bid which is you know you are one of the Eastern ORG fastest growing investors in China GPE Tesla you've talked about it being a third ORDINAL Twitter PERSON that kind of public forum for free speech The Chinese NORP historically don't tend to be very enthusiastic about free speech are you worried Whether you can keep those two CARDINAL particular horses running is is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP ? Well Twitter PERSON does not operate in And I think China GPE does not attempt to if you HVA was the Free speech of the work of the press in the US GPE at as far as I know I seem You're not under pressure to at Bloodberg PERSON to From China GPE . So, I think there's I don't think it's gonna be an issue. And in terms generally of that issue of freedom of speech and Twitter PERSON you've talked about Twitter PRODUCT being making it even freer and letting more people onto it. Is there a limit at all to to who you think should be allowed onto Twitter PRODUCT ? My aspiration for Twitter PERSON or in in general for the digital town square would be that it is as inclusive In in the world it says the word as possible That is it is an appealing Of years. So, I mean, I do like to get like 80% PERCENT of That's it. North America LOC and perhaps I don't know half CARDINAL the world or something. Ultimately on On Twitter PERSON it's in one or another And that needs that means it must be something that is appealing to people it it obviously kind of your place where they feel uncomfortable or harassed or there's something not use it can you set the record straight on one CARDINAL thing which is this issue about the layoffs I think Said PERSON initially that Tesla GPE 10% PERCENT of the workforce will be cut then 10% PERCENT of salary would be cut then salary would stay flat and overall headcount would go up what What is the number? I know there's already I think being AA lawsuit The 10% PERCENT is is 10% PERCENT the goal to reduce the workforce. So what is the number that we should think about or that your planning? So it has the is reducing the salary work for us are roughly 10% PERCENT over the next Probably 3 months or so DATE To grow at our hourly TIME workforce. We're actually quite clear that we expect to grow out around hourly TIME workforce. But we We grew very fast with on the salary side. And we grew a little too fast in some areas. And so it requires a reduction in Workforce ORG mirror Two thirds CARDINAL hourly TIME in one third CARDINAL salary so I guess technically attempts that reduction in the solid work course is only roughly at three three and a half percent DATE reduction in total headcount Egypt GPE 's finance minister doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. No we are not already in a recession But we have now Of economic We have seen
Is is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP ? Well Twitter PERSON does not operate in And I think Free speech of the press in the US GPE at as far as I know I seem Under pressure to Got it from China GPE . So, I think there's I don't think this is gonna be an issue. And in terms generally of that issue of freedom of speech and Twitter PERSON you've talked about Twitter PRODUCT being making it even freeer and letting more people onto it. Is there a limit at all to to who you think should be allowed onto Twitter PRODUCT ? My aspiration for Twitter PRODUCT or in general for the digital town square would be that it is as inclusive In in the water since the word as possible That is it is an appealing system to use so I mean I do like to get like 80% PERCENT of That's it. North America LOC and perhaps I don't know half CARDINAL the world or something. Ultimately on On Twitter PERSON it's in one for another And that needs that means it must be something that is appealing to people it it obviously can help your place where they feel uncomfortable or harassed or there's something not use it can you set the record straight on one CARDINAL thing which is this issue about the layoffs I think Said PERSON initially But Tesla 10% PERCENT of the workforce will be cut then 10% PERCENT of salary would be cut then salary would stay flat and overall headcount would go up What is the number? I know there's already I think being AA lawsu About the 10% PERCENT is is 10% PERCENT the goal to reduce the workforce. So what is the number that we should think about? Or that your planning? So it has Are roughly 10% PERCENT Over the next Probably 3 months or so Expect DATE to grow at our hourly TIME workforce. Actually quite clear that we expect to grow up around hourly TIME workforce. But we We grew very fast with on the salary side And we we're a little too fast in some areas and so it requires reduction in Two thirds DATE hourly TIME and one third CARDINAL salary so I guess technically a 10% PERCENT reduction in the solid work horses only profit three three and a half percent CARDINAL reduction in total headcount Egypt GPE 's finance minister doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. Recession but Economic Wallet Bank Have reduced their expectation for economic growth but If the current direction To be continued and Even escalated I believe that an FW we will go for recession. Do you see that because of higher interest rates that are coming to barren your economy and the global economy? Package of elements will work together Us GPE to the session in Philadelphia GPE high cost of financing, food security, And whether this work can be accelerated somewhere where Nazare PERSON and also pressure on mini developing countries in this Economic growth will have to suffer from the negative impact which will be at the expense of their ability to grow Are you in shock Or panic over fuel and food at the moment.
You think it should be allowed onto Twitter PRODUCT My aspiration for Twitter PRODUCT or in general for the digital town square would be that it is as inclusive in in the water since the word as possible That is it is an appealing Our sister views. So, I mean, I do like to get like 80% PERCENT of That's it North America LOC and perhaps I don't know half CARDINAL the world or something ultimately on On Twitter PERSON in one CARDINAL for another And that needs that means it must be something that was appealing to people. It it obviously came out of your place where they feel uncomfortable or harassed. Or there was something not use it. Can you set the record straight on one CARDINAL thing which is this issue about the layoffs? I think you've Initially that Tesla 10% PERCENT of the workforce will be cut then 10% PERCENT of salary would be cut then salary would stay flat and overall headcount would go up what What is the number? I know there's already I think being AA lawsuit 10% PERCENT is is 10% PERCENT the goal to reduce the workforce so what is the number that we should think about or that you're planning So it has the is reducing the salary work for us are roughly 10% PERCENT over the next 3 months or so Expect DATE to grow at our hourly TIME workforce actually quite clear that we expect to grow up around hourly TIME workforce but we Grew very fast with on the salary side And we we're a little too fast and some areas and so it requires reduction in salary we're forced to wear about two thirds CARDINAL hourly TIME in one third CARDINAL salary so I guess technically a 10% PERCENT reduction in the seller group was only roughly at three three and a half percent DATE reduction it Account ORG . Egypt GPE 's finance minister doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. No we are not already in a recession But we have now Of economic Wallet PERSON bank Have reduced their expectation for economic growth but If the current direction To be continued Might be even escalated. I believe that enoughly we will go for recession. Economy and the global economy. Package of elements will work together Us GPE to the session in Philadelphia GPE high cost of financing food security And also pressure on mini developing countries in this world which can Economic growth will have to suffer from the negative impact which will be at the expense of their ability to grow Are you in shock Or panic over fuel and food at the moment Panic brothers ORG and shock. I believe that Thinks well activate further it will materialize to a big shock The consequence Of food and fuel is 13% PERCENT core inflation sir I've had people tell me inflation is topping out Do you think inflation has plateaued or top diet? Expectation is to increase not to decrease. Significantly It depends. If If oil prices will continue this event Continue to this trend.
If you are uncomfortable or harassed or there's something not use it. Can you set the record straight on one CARDINAL thing which is this issue about the layoffs? I think you Initially that Tesla 10% PERCENT of the workforce will be cut then 10% PERCENT of salary would be cut then salary would stay flat and overall headcount would go up What is the number? I know there's already I think being AA lawsu About the 10% PERCENT is is 10% PERCENT the goal to reduce the workforce. So what is the number that we should think about? Or that your planning? So it has Are roughly 10% PERCENT Over the next Probably 3 months or so Expect DATE to grow at our hourly TIME workforce. We're actually quite clear that we expect to grow up around hourly TIME workforce. But we We grew very fast with on the salary side And we we're a little too fast in some areas and so it requires reduction in Two thirds DATE hourly TIME in one third CARDINAL salary so I guess technically a 10% PERCENT reduction in the solid work horses only profit three three and a half percent CARDINAL reduction in total head countdown Egypt GPE 's finance minister doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. But we have now Of economic Wallet Bank I'm a Have reduced their expectation for economic growth but If the current direction To be continued and Escalated I believe that NFW ORG we will go for recession. Do you see that because of higher interest rates that are coming to bar in your economy and the global economy? A package of elements will work together High cost of financing, food security, And whether this work can be accelerated somewhere where Nazare PERSON and also pressure on mini developing countries in this world Impact which will be at the expense of their ability to grow Are you in shock Or panic over fuel and food at the moment Panic rather than a shock I believe that Since we'll accelerate further it will materialize to a big shock. The consequence Of food and fuel is 13% PERCENT core inflation sir I've had people tell me inflation is topping out it's it's it's over second half of the year to get better do you share that view do you think inflation has plateaued or top diet Expectation is to increase not to decrease. Significantly It depends Hey If oil prices will continue this event Food prices continue to this trend if Will increase interest further Particular is at you know we may start to see in addition to what we have seen until now And difficulties to get financing How Bob PERSON could he get? If you are talking about Egypt GPE then particular indeed sir 13% PERCENT You know, will depend on
We have Vanelle GPE Of economic Wallet PERSON bank, Have reduced their expectation for economic growth but If the current direction And Escalated That inevitably we will go for recession. Economy and the global economy. Package of elements will work together High cost of financing, food security, About the war and the extent of the war and whether this war can be accelerated somewhere Developing countries in this world which can contribute heavily to economic growth will have to suffer from the negative impact which will be at the expense of their ability to grow Are you in shock Or panic over fuel and food at the moment Panic rather than a shock. I believe that If things will accelerate further it will materialize to a big shock. The consequence Of food and fuel is 13% PERCENT cool inflation sir I've had people tell me inflation is topping out It's over. Get better. You do you think inflation has plateaued or top diet? Expectation is to increase not to decrease. Significantly It depends. If we, if oil prices will continue this event, if food prices continue to this trend if And the other central banks will increase interest further We will go for federal in Felicia GPE . Particularly at you know we may start to see any addition to what we have seen until now. Difficulties to get financing So it's 13% PERCENT on the core at the moment. How bad could it get? If you are talking about Egypt GPE and particular in detail 13% PERCENT We are important. This is a significant part. Why? Because if infiltration accelerates further As a result of all these factors and in addition to that higher interest rate Add to higher cost of financing. We will be negatively impacted. We hope that this will not be materialized and are coming period So we should What are they well increase further And we don't know what will be there decisions very soon To the act to initiate further significant rate hikes from the Central Bank ORG . Yes. Egyptian NORP economy to grow and high cost of financing it will be a problem for the industrial for the For the economy but eventually inflation is a core business infection control is part of the core business for central Up next the deputy chairman and CEO of the
At the expense of their ability to grow. Are you in shock Or panic over fuel and food at the moment. Panic rather than a shock. I believe that Sings well accelerate further it will materialize to a big shock The consequence Of food and fuel is 13% PERCENT core inflation sir I've had people tell me inflation is topping out It's it's over second half of the year to get better. Do you think inflation has plateaued or top diet? Dictation is to increase not to decrease. Significantly It depends. If If oil prices will continue this event Continue to this trend if the federals and the other central banks will increase Particular PRODUCT is at you know we may start to see in addition to what we have seen until now What interruption to trade more interruption to supply chain How Bob PERSON could he get? If you are talking about Egypt GPE and particular indeed sir 13% PERCENT You know will depend on We are important. A significant part. Why? Because if infilation accelerate further in Europe LOC , in United States of America GPE , as a result of Higher interest rate will add to higher cost of financing We will be negatively impacted. We hope that this will not be materialized in the coming period DATE . So, we should you know, What they will increase further And we don't know what will be there Very soon. In Felicia PERSON . Yes I hope that Egyptian NORP economy to grow and high cost of financing it will be a problem for the industrial for the For the economy but eventually infiltration is a core business in fish and control is part of the core business for central bank How much of a premium he thinks the war in Ukraine GPE has put in the oil prices? This is Bloombad GPE . Is that communicating via video is not a fad that we are using in all aspects of our lives for work or learning for communicating for staying in touch. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists.
If if oil prices will continue this rent Food prices continue to this trend And the other central banks will increase interest further Particular is at you know we may start to see in addition to what we have seen until now more interruption to trade more interruption to supply chain If you are talking about Egypt GPE and particular indeed sir 13% PERCENT You know will depend on We are important. This is a significant part. Why? Because if infiltration accelerate further in Europe LOC , in United States of America GPE , as a result of all this factors, and in Higher interest rate will add to higher cost of financing this will mean that we will be negatively impacted we hope that this will not be materialized in the coming period So we should What are they will increase further Business boy and And we don't know what will be there decisions very soon to react to in Felicia Significant ORG rate hikes from the Central Bank ORG . Yes, I hope that Egyptian NORP economy to grow and high cost of financing it will be a problem for the industry for the Control ORG is part of the core business for central He thinks the war in Ukraine GPE has put in the oil prices. This is Bloombad GPE . Is that communicating via video is not a fad that we are using in all aspects of our lives for work or learning for communicating for staying in touch. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution.
If you are talking about Egypt GPE then particular You know will depend on We are important. This is a significant part. Why? Because if infilation accelerate further in Europe LOC , in United States of America GPE , as a result of all these factors Higher interest rate will add to higher cost of financing this will mean that we will be negatively impacted. We hope that this will not be materialized in the coming period DATE . So we should you know I'm worried also What are they well increase further And we don't know what will be there decisions very soon to react to in Felicia PERSON . So you are worried about further significant Hikes PERSON from the Central Bank ORG . I hope that Egyptian NORP economy to grow and high cost of financing it will be a problem for the industrial for the For the economy but eventually infilation is a core business inflation control is part of the core business for central bank of Egypt. Up next the deputy chairman and CEO of the Kui Patrolium Corporation ORG tells us how much of a premium he thinks the war in Ukraine GPE has put in the oil prices. This is Bloombad GPE . I think we've seen during this period of time is that communicating via video is not a sad that we are using in all aspects of our lives for work or learning for communicating for staying in touch. Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good ambassador I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest invest The people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Energy was of course the major theme of the week DATE and the deputy chair and CEO of the Kuai Patrolium Corporation ORG told us he thinks the war in Ukraine GPE has only highlighted how important energy is to the world Premium into the oil market. It got up with my colleague. We think that oil is there for the long term in terms of even an idiot energy transition. So Maybe concerned about what would obviously the next 18 months DATE .
Center Bank of Egypt ORG . Up next the deputy chairman and CEO of the patrolium corporation tells us how much of a premium he thinks the war in Ukraine GPE has put in the oil prices. This is Blue Bad ORG . Communicating for staying in touch. Bloomberg PERSON has enhanced search on the terminal. To deliver what you need. When you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor? I tell them it's the surround yourself with and work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world People that I would like to have managing my money. Revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. How important energy is to the world. Rackings the conflict has put a $30 MONEY barrel premium into the oil market it got up with my colleague Francine Laquar PERSON We think that oil is there for the long term in terms of even an idiot energy transition So Maybe concerned about what what obviously the next 18 months DATE is gonna do for financing and and for our cash balances but over the long term we're quite confident that oil will remain at at stable and and good enough prices for us. How does a short term? Yes. The war in Ukraine GPE . Of course, what we're seeing with COVID changed the Transition. Does that get pushed back? You have to you have to keep an eye on that as well but the Mistake that a lot of us a lot of people have made Before the the Ukraine war was to say this is gonna be a war against fossil fuels and that we must stop This crisis in Ukraine Through GPE all the humanitarian issues that come with it Hydrocarbons have AA big role to play now can we make the hydrocarbons cleaner and and more efficient absolutely that's how what we're trying to do and that At the lowest Cash cost and carbon footprint. Now, we need to stay there. That's gonna require a lot of investment. It's just bad.
Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest The people that i would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Energy was of course the major theme of the week DATE and the deputy chair and CEO of the Kuai Patrolium Corporation ORG told us he thinks the war in Ukraine GPE has only highlighted how important energy is to the world Premium into the oil market. It caught up with my colleague Francine Laquar PERSON . We think that oil is there for the long term in terms of even an idiot energy transition. So We may be concerned about what what obviously the next 18 months DATE is gonna do for financing and and for our cash Good enough prices for us. Yes the war in Ukraine GPE of course what we're seeing with COVID The energy transition. Does that get pushed back? You have to keep an eye on that as well but the Mistake that a lot of us a lot of people have made before the the Ukraine war was to say this is gonna be a war against fossil fuels and that we must stop oil production. Well, the world is using more carbon now than it ever did before. And this crisis in in Ukraine Next GPE to all the humanitarian issues that come with it shows you that energy is required to fuel the future and hydrocarbons have AA big role Storage using carbon as EOR processes or really abating the carbon footprint of the oil barrel. We're in Kuwait GPE and Footprint Now, we need to stay there. That's gonna require a lot of investment. If you speak to climate activists Investment in the short term or no. He continued investment I mean prices where they are that is spring investment you're seeing some Overtime you're seeing a lot of us also continuing to to produce now four four CARDINAL companies like KPC ORG we look at the long term so we're investing right through the cycle but companies that that don't do that are are putting in more investment right now The question right now is really about the cash cost Of of those investments with inflation and and steel prices and whatnot. Yeah. Going through the roof. It's going to be an issue. And the energy price is so high right now. I see AA war premium of about $30 MONEY in the current price right now that but for the war and in Ukraine GPE you'd probably be seeing About $89 MONEY barrel oil which is not that high. Over the past it's it's actually you know it takes you back to the the last thing that we had so it's
Lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Energy was of course the major theme of the week DATE and the deputy chair and CEO of the Kuai Patrolium Corporation ORG told us he thinks the war in Ukraine GPE has only highlighted how important energy is to the world Premium into the oil market. It got up with my colleague Franci Laquar PERSON . We think that oil is there for the long term in terms of even an idiot energy transition. So We maybe concerned about what what obviously the next 18 months DATE is gonna do for financing and and for our cash balances but over Term we're quite confident that oil were remained at at stable and and good enough prices for us. How does a short term? Yeah. The war in Ukraine GPE . Of course, what we're seeing with COVID changed the energy transition. So, the AIA ORG said look Does that get pushed back? No you have to you have to keep an eye on that as well but the Mistake that a lot of us had a lot of people have made Before the the Ukraine war was to say this is gonna be a war against fossil fuels and that we must stop oil production. Well, the world is using more carbon Next to all the humanitarian issues that come with it. Shows you that energy is required to fuel the future and hydrocarbons have AA big role Storage using carbon as EOR processes or really abating the carbon footprint of the oil barrel. We're in Kuwait GPE and In cash cost And carbon footprint. Now, we need to stay there. That's gonna require a lot of investment. Investment in the short term or no. Continued investment. That is spring DATE investment. Overtime you're seeing a lot of us also continuing to to to produce now four four CARDINAL companies like KPC ORG we look at the long term so we're investing right through the cycle but Companies that that don't do that are are putting in more investment right now. The cash, the game, the the question right now is really about the cash cost of of those investments with inflation and and steel prices and whatnot. Yeah. Going through the roof. It's going to be an issue. With the oil price and the energy price is so high right now. Use prices to stabilize. I see AA war premium of about $30 MONEY in the current price right now that but for the war and and Ukraine GPE you'd probably be seeing About $89 MONEY barrel oil which is not that high. Over the past month DATE that we had so somewhere in the Which is still comfortable. Economy is about a third CARDINAL of what it was about 20 years ago DATE . And it continued to go down. So, oil prices, yes, they do impact Economic growth to a certain type of Do you see any demand destruction in our conversation Anywhere. We're getting And some cases a little bit more. Up next Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation this is Bloomberg PERSON .
Oil is there for the long term in terms of even any energy transition. So We may be concerned about what what obviously the next 18 months DATE is gonna do for financing and and for our cash Stable and good enough prices for Yes. Of course what we're seeing with COVID change the energy transition so the AA said look we have to start with Does that get pushed back? As well but the Mistake that a lot of us a lot of people have made before the the Ukraine war was to say this is gonna be a war against fossil fuels and that we must stop oil production. Well, the world is using more carbon now than it ever And this crisis in in Ukraine GPE All the humanitarian issues that come with it And hydrocarbons have AA big role to play now can we make the hydrocarbons cleaner and and more efficient absolutely that's how what we're trying to do Carbon Or really abating the carbon footprint of the oil barrel. We're in Kuwait GPE and I mentioned this earlier that I weird Kuwait GPE at the lowest end of the cost curve both in cash cost and carbon footprint. Now, we need to stay there. That's gonna require a lot of investment. See more investment in the short term or no. Continued investment. And you're seeing US GPE production going up overtime. You're seeing a lot of us. Also continuing to to to produce now four four CARDINAL companies like KPC ORG . We look at the long term so we're investing right through But companies that that don't do that are are putting in more investment right now the question right now is really about the cash cost of of those investments withinflation and and steel prices and whatnot. Yeah. Going through the roof. It's going to be an issue. With the oil price and the energy price is so high right now. Speaking these prices to stabilize I see AA war premium of about $30 MONEY in the current price right now that but for the war and in Ukraine GPE you'd probably be seeing Barrel PERSON oil which is not that high. Over the past Talk to the the last big bump that we had so somewhere in the $ 67 MONEY range which is still comfortable. The energy intensity of the world economy is about a third CARDINAL of what it was about 20 years ago DATE . And it's continued to go down. So since I put the the The size of that impact has has diminished incorrectly. In our conversation we're the best We're getting Calls from our customers say demanding the same amount of oil in some cases a little bit more. Up next Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation this is Bloomberg PERSON . I'm David Weston PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio.
It's just bad. Investment in the short term or no. He continued investment. I mean, prices where they are, that is spring investment. You're seeing some Overtime you're seeing a lot of us also continuing to to produce now four four CARDINAL companies like KPC ORG we look at the long term so we're investing right through the cycle but companies that that don't do that are are putting in more investment right now Right now is really about the cash cost Of of those investments with inflation and and steel prices and whatnot. Yeah. Going through the roof. It's going to be an issue. But the oil price and the energy price is so high right now. I see AA war premium of about $30 MONEY in the current price right now that but for the war and and Ukraine GPE you'd probably be seeing About $89 MONEY barrel oil which is not that high. And that is adjusted for inflation over the past three DATE it's it's actually you know it takes you back to the the last thing that we had so it's somewhere in Which is still comfortable. City of the world economy is about a third CARDINAL of what it was about 20 years ago DATE and it continued to go down so oil prices yes they do impact Economic growth. The Alright ORG . The size of that impact has has diminished. I haven't yet seen demands The same calls from our customers say demanding the same amount of oil and some cases of a little bit more. Up next Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation this is Bloomberg PERSON . I'm David Weston PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio Months DATE do you see that coming true Moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Welcome back to the secretary Steven Mnuchin PERSON says inflation in the US GPE can be brought under control if energy prices settle down and the federal reserve ORG follows through on its pledge to continue raising interest rates I do have a lot of confidence in in chair power by the way it's fun I can now talk about the fed ORG I wasn't allowed to talk about fed ORG policy for many years you you know I I guess my my most important advice to the administration is don't do anything to shock the economy They had been talking about raising taxes. They had been talking about making different changes. Not now is not
Over the past month DATE that we had so it's somewhere in the $ 67 MONEY range which is still comfortable. The energy intensity of the world economy is about a third CARDINAL of what it was about 20 years ago DATE . And it's continued to go down Oil prices yes they do impact Economic growth. The Alright ORG . The size of that impact has has diminished incredible. Would you see any demand destruction in our conversation? Anywhere. I haven't yet seen the structure. We're getting Calls from our customers say demanding the same amount of oil and some cases a little bit more. Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation. This is Bloomberg PERSON . I'm David Weston PERSON . We think that's the next secular shift from businesses most influential and instrumental. This is a level of uncertainty that we haven't had to deal with. No one covers the world like Bloomberg PERSON . Do you see that coming Where are the job cuts to come from? 24 hours TIME a day. Bloomberg PERSON . Welcome back to the Says inflation in the US GPE can be brought under control I do have a lot of confidence in in Chara Powell PERSON by the way it's fun I can now talk about the fed ORG I wasn't allowed to talk about Fed ORG policy for many years DATE you know I I guess my my most Advice GPE to the administration is don't do anything to shock the economy So they had been talking about raising taxes. They had been talking about making different changes. Not now is not the time to put any additional shocks. Things like gas tax on the margin may help a little bit but this is really now the federal resource job and the administration needs to Careful not to get in the way. I do think, you know, the number one CARDINAL thing the administration can do and I think it's not just them. It's obviously otherworld leaders is we need to find a political solution to this war. A military solution alone Not going to be what stops this. You have confidence in chairman Powell PERSON and you know well. Having worked together And other members of the federal reserve ORG . The reality, however, is that financial markets aren't certain whether they have confidence in chairman Powell PERSON There's a growing consensus that the federal reserve ORG isn't raising rates fast enough Said PERSON lost credibility with it's Perspective on inflation that it was transitory two CARDINAL questions Do you think that the federal reserve ORG needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world Hey.
Up next Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation this is Bloomberg PERSON . Wall St. From businesses most influential and instrumental. This is a level of uncertainty that we haven't had to deal with. Television and radio No one covers the world like Bloomberg PERSON . In the coming months DATE do you see that coming 24 hours TIME a day. Bloomberg PERSON your global business authority. Welcome back to the best of Carter Economic Forum ORG former Treasury ORG Secretary Steven Manuchin PERSON says inflation in the US GPE can be brought onto control Follows through on its pledge to continue raising interest rates. He spoke to Bloomberg PERSON 's Eric Shatska PERSON . I do have a lot of confidence in in chairpower. By the way, it's fun. I can now talk about the fed ORG . I wasn't allowed to talk about fed ORG policy for many years DATE . You know, I I guess my my most Advice GPE to the administration is don't do anything to shock the economy So they had been talking about raising taxes. They had been talking about making different changes. Not now is not the time to put any additional shocks. Things like gas tax on the margin may help a little bit but this is really now the federal resource job and the administration needs to be Careful not to get in the way. I do think you know the number one CARDINAL thing the administration can do And I think it's not just them it's obviously other world leaders is we need to find a political solution To this war. A military solution alone Not going to be what stops this You have confidence in chairman Powell PERSON and you know well. Having worked together The reality however is that financial markets aren't certain whether they have confidence in chairman Powell PERSON There's a growing consensus that the federal reserve ORG isn't raising rates fast enough and the fed ORG lost credibility with its Inflation that it was transitory Two CARDINAL questions Think that the federal reserve needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world And What will it take to restore that last credibility Well let me just say it wasn't just the federal reserve the administration also Was talking about inflation would be under control. So, you know, I think from the Fed ORG stamp point Hindsight they clearly waited too long but having said that when your managing the economy near the federal reserve I think you have to balance both sides of that equation I don't buy that the Fed ORG has lost credibility I think the fact that the Fed ORG moved in 75 CARDINAL basis points which The go is not what the market expected I think chairpower is now signal another 75 CARDINAL basis points I think if you look at the dots which I never was a big fan of these dogs
Replays all weekend DATE on bloomberg PERSON television and radio No one covers the world like Bloomberg PERSON . In the coming months DATE do you see that coming We will not just cut Resources The moment news breaks 24 hours TIME a day. Says inflation in the US GPE can be brought onto control Follows through on its pledge to continue raising interest rates. He spoke to Bloomberg PERSON 's Eric Shatska PERSON . I do have a lot of confidence in in chair power. By the way, it's fun I can now talk about the fed ORG . I wasn't allowed to talk about Fed ORG policy for many years DATE . You know, I I guess my my most Advice GPE to the administration is don't do anything to shock the economy So they had been talking about raising taxes. They had been talking about making different changes. Not now is not the time to put any additional shocks. Things like gas tax on the margin may help a little bit. But this is really now the federal resource job and the administration needs to be Not to get in the way. I do think, you know, the number one CARDINAL thing the administration can do And I think it's not just them it's obviously other world leaders is we need to find a political solution To this war. Military solution alone Not going to be what stops this. You have confidence in chairman Powell PERSON whom you know well Having worked together with him and other members of the Federal Reserve ORG . The reality, however, is that financial markets aren't certain whether they have confidence in chairman Powell PERSON . There's a growing consensus that the federal reserve ORG isn't raising rates fast enough and the fed ORG lost credibility with its On inflation that it was transitory Two CARDINAL questions Think that the Federal Reserve ORG needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world And Will it take to restore that last credibility Well, let me just say it wasn't just the federal reserve. The administration also Was talking about inflation would be under control. So, you know, I think from the Fed ORG stamp point Hindsight they clearly waited too long but having said that when your managing the economy near the federal reserve I think you have to balance both sides of that equation I don't buy that the Fed ORG has lost credibility I think the fact that the fed ORG moved in 75 CARDINAL basis points which Ago PERSON is not what the market expected. I think chair power is now signaled. Another 75 CARDINAL basis points. I think if you look at the dot plots which I never was a big fan of these dot plots but that's another story. You know, I think the market understands that expectations are the fed ORG is the feds gonna raise rights. I think the portfolio is just as important and they're they're beginning to slow There. You know, look, a year ago DATE , I said, we're gonna have 10 year DATE treasuries three to three and a half percent CARDINAL and people fought that was really high. We basically have ten-year DATE treasures at three to three and a half percent CARDINAL . If the market really didn't have credibility in the fed ORG , interest rate, the long end would be a lot hot In the desk. Economic forum.
Thing to shock the economy So they had been talking about raising taxes. They had been talking about making different changes. Not now is not the time to put any additional shocks. Things like gas tax on the margin may help a little bit. But this is really now the federal resource job and the administration needs to Careful not to get in the way. I do think, you know, the number one CARDINAL thing the administration can do and I think it's not just them. It's obviously other world leaders is we need to find a political solution to this war. A military solution alone Not going to be what stops this You have confidence in chairman Powell PERSON and you know well. Having worked together And other members of the federal reserve ORG . The reality, however, is that financial markets aren't certain whether they have confidence in chairman Powell PERSON . There's a growing consensus that the federal reserve ORG isn't raising rates fast enough and the fed ORG lost credibility with its Perspective on inflation that it was transitory two CARDINAL questions Do you think that the Federal Reserve ORG needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world And What will it take to restore that last credibility Well let me just say it wasn't just the federal reserve the administration also Was talking about inflation would be under control. So, you know, I think from the Fed ORG stamp point In hindsight they clearly waited too long Having said that when you're managing the economy near the federal reserve I think you have to balance both sides of that equation I don't buy that the Fed ORG has lost credibility I think the fact that the Fed ORG moved in 75 CARDINAL basis points which a month ago DATE is not Market expected. I think chairpower is now signaled. Another 75 CARDINAL basis points. I think if you look at the dot plots which I never was a big fan of these dog plots but that's another story You know I think the market understands that expectations are the the feds gonna raise rights. I think the portfolio is just as important and there there beginning to slow that down. You know look a year ago DATE I said we're gonna have 10 year DATE treasuries three to three CARDINAL And people thought that was really high we basically have 10 year DATE treasures at three to three and a half percent CARDINAL If the market really didn't have credibility in the federal the long end would be a lot hotter than it is. And the CEO of the He thinks that even if you're enters one, he still bullish on the region. To my colleague We could go into a recession in some part of the world maybe in Europe LOC I had commented that we might go on to our recession in Europe LOC because of the energy prices of pressure But also I have a positive review on Europe LOC and General Island LOC a long term Europe LOC as a destination of a lot of talent They have a very good education system It's a tourist ticket destination as well And they have on top of this they have also an advanced program in the renewables and this is will give them an advantage over any other you know countries So It might be a little bit difficult in Europe LOC but in the long run I'm bullish about it. So is is Europe LOC at the Your biggest worry but also your biggest opportunity. If you look at the part of cash, how much you wanna put in Europe LOC compared to other regions in the world? See from from 2018 DATE , once we have announce our strategy, we we were very vocal about our concentration in Europe LOC . Yeah. And at the same time we have said that we will not be stopping and resting in Europe LOC . We will be very selective But we are going full speed and and the US GPE market and Asia LOC . We have a you know other friends I said
Do you think that the Federal Reserve ORG needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world And What will it take to restore that last credibility Well let me just say it wasn't just the federal reserve the administration also Was talking about inflation would be under control. So, you know, I think from the Fed ORG standpoint Hindsight they clearly waited too long but having said that when you're managing the economy near the Federal Reserve ORG I think you have to balance both sides of that equation I don't buy that the Fed ORG has lost credibility I think the fact that the Fed ORG moved in 75 CARDINAL basis points which The go is not what the market expected. I think chair power is now signaled. Another 75 CARDINAL basis points. I think if you look@the. Plot which I never was a big fan of these dot plots but that's another story. You know, I think the market understands that The fed ORG 's gonna raise rights. I think the portfolio is just as important and there there beginning to slow that down. You know, look, a year ago DATE , I said, we're gonna have 10 year DATE treasuries, three to three and a half percent CARDINAL and people fought that was really high. We basically have 10 year DATE treasures To three and a half percent DATE . If the market really didn't have credibility in the fed ORG , interest rate, the long end would be a lot hotter than it is. Enters one he still bullish on the region Mansour Ben PERSON Ibrahim Al Mahmud PERSON To my colleague Franci Laquar PERSON . We could go into a recession in some part of the world maybe in Europe LOC I had commented that we might go into a recession in Europe LOC because of the energy prices of pressure But also I have a positive review in Europe LOC and General in the long term Europe LOC as a destination of a lot of talent They have a very good education system It's a tourist ecstatic destination as well And and they have on top of this they have also an advanced program in the renewables and this is will give them an advantage over any other you know countries So It might be a little bit difficult in Europe LOC but in the long run I'm bullish about it. So is is Europe LOC at the moment that your biggest But also your biggest opportunity if you look at the part of cash how much you wanna put in Europe LOC compared to other regions in the world see from from 2018 DATE once we have an answer or strategy we we were very vocal about our concentration in Europe LOC no And at the same time we have said that we will not be stopping investing in Europe LOC . We will be very selective. But we are going for the speed and and the US GPE market and Asia LOC . We have a, you know, other friends I said to location of geographies and we would like to To reach a proper location between the geographies But again, Europe LOC , we will, we will not stop investing. We will continue investing. Where I have, I wasn't in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technology space In Europe LOC . I I think at some point you're looking for assets, infrastructure, assets in Africa LOC , is it still the case? Yeah, of course, I've been if we can deploy more and have we can and for a structure would be a fantastic. We have been investing in renewables as well and and Africa LOC . And we would like to do more. It's a little bit than a slower pace and other you know a countries We are trying to find our partner to deploy more in Africa LOC . Anything with Russia GPE so you you haven't a non I mean actually AA pretty sizable and considerable assets in rush hour what will happen to them Status quo. We are not investing more in Russia GPE . At the same time to be practical. You cannot take
I think chairpower is now signal. Another 75 CARDINAL basis points. I think if you look at the dot plots which I never was a big fan of these dot plots but that's another story You know I think the market understands that expectations The fed ORG 's gonna raise rates I think the portfolio is just as important and they're they're beginning to slow that down you know look a year ago DATE I said we're gonna have 10 year DATE treasuries three to three and a half percent CARDINAL and people fought that was really high we basically have 10 year DATE treasures at three CARDINAL to If the market really didn't have credibility in the fed ORG , interest rate, the long end would be a lot hotter than it is. Even if Europe LOC enters one he still bullish on the region Mantua NORP been Ibrahim Al Mahmud PERSON spoke to my colleague We could go into a session in some part of the world maybe in Europe LOC I had commented that we might go onto our recession in Europe LOC because of the energy prices of pressure But also I have a positive review on Europe LOC and General in the long term. Europe LOC as a destination of a lot of talent They have a very good education system It's a tourist ticket destination as well And they have on top of this they have also an advanced program in the renewables and this is will give them an advantage over Any other you know countries. It might be a little bit difficult in Europe LOC but in the long run I'm bullish about it. So is is your about the moment that your biggest Worry but also your biggest opportunity if you look at the part of cash how much you wanna put in Europe LOC compared to other regions in the world see from from 2018 DATE once we have an answer or strategy we we were very vocal about our concentration in Europe LOC And at the same time we have said that we will not be stopping investing in Europe LOC . We will be very selective. But we are going full speed and and the US GPE market and Asia LOC We have a you know other friends Location ORG and term of geographies and we would like to To reach a proper location between the geographies Again Europe LOC we will we'll not stop investing. We will continue investing. We have I wasn't in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technologies based In Europe LOC . I I think at some point you're looking for assets, infrastructure, assets, and Africa LOC . Is it still the case? Yeah, of course, I've been if we can deploy more in African NORP and for a structure would be a fantastic. We have been investing and renewables as well and and Africa LOC . And we would like to do more. It's it's a little bit than a slower pace and other you know a countries But we are trying to find our partner to deploy more in Africa LOC . Anything with Russia GPE so you you haven't a non I mean actually AA pretty sizable and considerable assets in Russia GPE what will happen to them Still status quo we are not investing more in Russia GPE at the same time to be practical you cannot exit I know some some companies have announced to to exit it but and a reality they couldn't We are monitoring the situation in Russia GPE . We are in full compliance with the international sanction. We are our team on top of this in a daily basis to make sure that there are And bidding any any update on the sanction But we always wish and hope that this is will be settled very soon for the sake of the people of of Ukraine GPE Are you in touch with the Russian NORP government about some of these assets? Naturally right now but but you know we have a big a big investment in Rosener PERSON as you know Rosenth ORG itself is not undersanction. Of course we have a fiduciary to our future generation of course we will be in
The long end would be a lot hotter than it is. Even if Europe LOC enters one he still bullish on the region Mansour Ben Ibrahim Al Mahud PERSON spoke We could go into a recession in some part of the world maybe in Europe LOC I had commented that we might go into a recession in Europe LOC because of the energy prices of pressure But also I have a positive review in Europe LOC and General in the long term Europe LOC as a destination of a lot of talent They have a very good education system It's a tourist ecstatic destination as well And and they have on top of this they have also an advanced program in the renewables and this is will give them an advantage over any other you know countries So It might be a little bit difficult in Europe LOC but in the long run I'm bullish about it. So is is Europe LOC at the moment that your biggest But also your biggest opportunity if you look at the part of cash how much you wanna put in Europe LOC compared to other regions in the world see from from 2018 DATE once we have an answer or strategy we we were very vocal about our concentration in Europe LOC no And at the same time we have said that we will not be stopping investing in Europe LOC . We will be very selective. But we are going for the speed and and the US GPE market and Asia LOC . We have a, you know, other friends I set a location and term of geographies and we would like to To reach a proper location between the geographies But again, Europe LOC , we will, we will not stop investing. We will continue investing. Where I have, I wasn't in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technology space In Europe LOC . I I think at some point you're looking for assets, infrastructure, assets in Africa LOC , is it still the case? Yeah, of course, I've been if we can deploy more in Africa LOC and for a structure, we'd be fantastic. We have been investing in renewables as well, and and Africa LOC , and we would like to do more. It's it's a little bit than a slower pace and other you know a countries We are trying to find our partner to deploy more in Africa LOC . Anything with Russia GPE so you you haven't a non I mean actually AA pretty sizable and considerable assets in Russia GPE what will happen to them? Status quo. We are not investing more in Russia GPE . At the same time to be practical. You cannot exit. I know some some companies have announced to to exit it but and a reality they couldn't. We are monitoring the situation in Russia GPE . We are in full compliance with the international sanction. We are our team on top of this in a daily basis to make sure that there are And bidding any any update on the sanction But we always wish and hope that this is will be settled very soon for the sake of the people of of Ukraine GPE . Or are you in touch with the Russian NORP government about some of these assets? Naturally right now but but you know we have a big a big investment in Rose GPE enough as you know Rosenth ORG itself is not under sanction. Of course we have a fiduciary 2 hour TIME future generation of course we will be in touch of them for for the dividends that we we deserve. But any further investment now What do you do with crypto right now so it was I mean it's up it's down depends on stable coins or or other ones are you interested Cause? No, trip to now. A blockchain yes. We have very clear review on this and and our team and and the technology space are exploring opportunities and the blockchain. And that's all from the counter economic forum right here in Doha GPE . You can find complete coverage of the event including full interviews and articles. The destination, Bloomberg PERSON . Com.
We're going full speed and and the US GPE market and Asia LOC We have a you know other friends Location ORG in term of geographies and we would like to To a proper location between the geographies But again Europe LOC we will we'll not stop investing. We will continue investing. Where I have I was in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technology space and in Europe LOC . I think at some point you're looking for assets infrastructure acids in Africa LOC is it still the case yeah of course I've been if we can deploy more and if we can and for Australia GPE would be a fantastic we have been investing and renewables as well and and Africa LOC and we would like to do more It's it's a little bit in a slower pace and other you know a countries But we are trying to find our partner to deploy more in Africa LOC . Anything with Russia GPE so you you haven't a non I mean actually AA pretty sizable and considerable assets in rush hour what will happen to them Still status go we are not investing more in Russia GPE at the same time to be practical you cannot take this I know some some companies have announced to to exit it but in reality they couldn't We are monitoring the situation in Russia GPE . We are in full compliance with the international sanction. We are our team on top of this in a daily basis to make sure that there are And bidding any any update on the sanction But we always wish and hope that this is will be settled very soon for the sake of the people of of your crime. Are you in touch with the Russian NORP government about some of these assets? Really right now but but you know we have a big a big investment in Rosener PERSON as you know Rosenth ORG itself it's not undersanction Of course we have a fiduciary to our future generation of course we will be in touch of them for for the dividends that we we deserve. But any further investment now What do you do with crypto right now? So it was I mean it's up. It's down. Depends on stable coins or or other ones. Are you interested? So nice at class? No. Trip to now. A blockchain yes We have very clear review on this and and our team and and the technology space are exploring opportunities in the blockchain. And that's all from the cutter economic forum right here in Doha GPE . You can find complete coverage of the event including full interviews and articles, the destination, Bloomberg PERSON . Com. This is Bloomberg Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find.
Happened to them? Status quo we are not investing more in Russia GPE at the same time to be practical you cannot exit I know some some companies have announced to to exit it but an an reality they couldn't We are monitoring the situation in Russia GPE . We are in full compliance with the international sanction. We are our team on top of this in a daily basis to make sure that there are And bidding any any update on the sanction But we always wish and hope that this is will be settled very soon for the sake of the people of of Ukraine GPE Are you in touch with the Russian NORP government about some of these assets? Naturally right now but but you know we have a big a big investment in Rosenette ORG as you know Rosenth ORG itself is not undersanction Of course we have a fiduciary to our future to generation of course we will be in touch of them for for the dividends that we we deserve. But any further investment now What do you do with crypto right now so it was I mean it's up it's down depends on stable coins or or other ones are you interested at something as a class no trip to now A blockchain yes We have very clear view on this and and our team and and the technology space are exploring opportunities in the blockchain. And that's all from the cutter economic forum right here in Doha GPE . You can find complete coverage of the event including full interviews and articles, the destination, Bloomberg PERSON . Com. This is Bloomberg Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Television and radio.
It's not intersanction Of course we have a fiduciary 2 hour TIME future generation of course we will be in touch of them for for the dividends that we we deserve. But any further investment now What do you do with crypto right now? So, it was, I mean, it's up, it's down, depends on stable coins or or other ones. Are you interested? So nice at class? No, trip to No. A blockchain yes We have very clear review on this and and our team and and the technology space are exploring a opportunities in the blockchain. And that's all from the counter economic forum right here in Doha GPE . You can find complete coverage of the event including full interviews and articles, the destination, Bloomberg PERSON . Com. This is Bloomberg Bloomberg PERSON has enhanced search on the terminal. To deliver what you need. When you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world Have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Bloomberg PERSON television and radio. Inflation is a terrible thing. Inflation you could tower. Rainfall GPE . I don't think it's a currency. I think it's a commodity. Today DATE , we're in an everything boat. Hi Eric Shatzker PERSON and welcome to Bloomberg PERSON 's Front Row today DATE i'm talking to Jean Hines PERSON the CEO of Wellington Management Boston ORG based Wellington GPE is one CARDINAL of the world's largest asset managers with almost $one MONEY . 30 billion CARDINAL of investments but It's a private partnership. The firm has been shrouded in mystery. Jean PERSON is changing that. She's also making ESG investing one of Wellington GPE 's top priorities. She says.
Economic forum right here in Doha GPE . You can find complete coverage of the event including full interviews and articles, the destination, Bloomberg PERSON . Com. This is Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People. Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. This is We think that's the next secular shift from businesses most Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio Deflation is a terrible thing. Inflation you could tower. Rainfall GPE . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Eric Shatzker PERSON and welcome to Bloomberg's Front Row ORG . Today DATE , I'm talking to Jean Hines PERSON , the CEO of Wellington Management ORG . Boston GPE based Wellington GPE is one CARDINAL of the world's largest asset managers with almost $one MONEY . 30 billion CARDINAL of investments. But because it's a private partnership, the firm has been shrouded in mystery. Jean PERSON is changing that. She's also making ESG investing one of Wellington GPE 's top priorities. She says sustainability will transform the structure of financial markets. We don't think it's woke. We think it's part of like a very very important part of studying the That in the risk set of of 5000 CARDINAL companies. Is that to say there's alpha and ESG or alpha and sustainability? Yeah, absolutely. Do you believe that? I believe that. Gina and I explore the strategies and perspectives that make Wellington GPE different and are defining her tenures CEO. Why she's still believes in globalization and having a presence in China GPE ? The virtues and challenges of active management. What to expect from Wellington GPE .
People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Renewable. This is a level of uncertainty that we haven't had to deal with. Television and radio. Deflation is a terrible thing. Inflation you could tower. Info PERSON . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Eric Shatzker PERSON and welcome to Bloomberg's Front Row ORG . Today DATE , I'm talking to Jean Hines PERSON , the CEO of Wellington Management ORG . Boston GPE based Wellington GPE is one CARDINAL of the world's largest asset managers with almost $one MONEY . 30 billion CARDINAL of investments. But because it's a private partnership the firm has been shrouded in mystery. Changing that. ESG investing one of Wellington GPE 's top priorities She says sustainability will transform the structure of financial markets. We don't think it's wolf we think it's part of like a very very important part of studying the Sustainability ORG . Yeah, absolutely. You believe that? I believe that. Jean PERSON and I explore the strategies and perspectives that make Wellington GPE different and are defining her tenures CEO. Virtues and challenges of active management. What to expect from Wellington GPE 's expansion into alternatives? The value of staying private. Here's my conversation with Jean Hines PERSON . Jean Wellington PERSON . Is one CARDINAL of the world's largest investment firms. But To Black Rock GPE , Pimco NORP , Sidelity NORP , Vanguard ORG , I could name others of course. It's hardly known. And certainly not well understood. Why? For a long history, we have had a very low public profile. So, that that would be number one. I would say another reason is that we are a subvisor. So, our largest business one of our largest businesses to be a subvisor to other Companies that are well known household names such as Vanguard ORG and Fidelity ORG and T Row Price for example. So, we would we don't we don't market directly to consumers. We are the content provider. So you combine those two CARDINAL that we're not, we're not actually, we're not a household name, brand name, but in also with the same time, we had a very low public profile It's probably the reason most people don't know us. Is Public profile flying under the radar if you like being a little mysterious good for business a competitive advantage it Served us well over time. I think for our current, if you, if you look in 2022 DATE , why am I talking to you today DATE ? We rely on partners. We're finding that it is important that our brand is known for our content. I think Very importantly and maybe even more importantly I also think it helps with talents So it's very interesting.
Inflation is a terrible thing. Inflation you could tower. Info PERSON . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Eric Shatzker PERSON and welcome to Bloomberg's Front Row ORG . Today DATE , I'm talking to Jean Hines PERSON , the CEO of Wellington Management ORG . Boston GPE -based Wellington GPE is one of the world's largest asset managers with almost $one MONEY . 30 billion CARDINAL of investments. But It's a private partnership the firm has been shrouded in mystery Jean PERSON is changing that. She's also making ESG investing one of Wellington GPE 's top priorities. Sustainability will transform the structure of financial markets. We don't think it's wolf we think it's part of like a very very important part of studying the Is that to say there's alpha and ESG or alpha and sustainability? Yeah, absolutely. Do you believe that? I believe that. Gina and I explore the strategies and perspectives that make Wellington GPE different and are defining her tenures CEO. Why she's still believes in globalization and having a presence in China GPE the virtues and challenges of active management. What to expect from Wellington GPE 's expansion into alternatives? The value of staying private. Here's my conversation with Jean Hines PERSON . Jean Wellington PERSON . Of the world's largest investment firms. But To Black Rock GPE , Sidelity I could name others of course It's hardly known. And certainly not well understood Why? For a long history, we have had a very low public profile so that that would be number one. I would say another reason is that we are a sub advisor. So, our largest business One CARDINAL of our largest businesses to be a subvisor to other companies that are well known household names such as Vanguard ORG and Fidelity ORG and T Row Price for example. So, we would we don't we don't market directly to consumers. We are the content provider So you combine those two CARDINAL that we're not we're not actually we're not a household name brand name but in also with the same time we had a very low public profile is probably the reason most people don't Us. Is Low public profile flying under the radar if you like being a little mysterious good for business a competitive advantage It probably served us well over time. I think for our current, if if you look in 2022 DATE , why am I talking to you today DATE ? We rely on partners. We're finding that it is important that Brand ORG is not known for our content. I think Maybe even more importantly I also think it helps with talents So, it's very interesting that, you know, for years DATE and years DATE and years, we would be, we would try to have track talent and no one would ever know anything about us And that served us that was fine when we were a Boston GPE -based company but when we began to globalize and and begin to hire investors all over the world that didn't serve us well. Hasn't it in the asset management industry, the importance of having a brand? Most of the asset management industry has made a bet. Yeah. On sustainability. Yeah. But ESG is is under attack There are state governments. Yeah. Here in the US GPE that are War on sustainable finance. They they're calling it wokeism. What do you think of that? We're not investing on the same ability from a value based perspective. We're investing in our capabilities from a how do we research companies? How are these companies earning? It's gonna how what are the risks to the companies from ESG factors? What are the opportunities for From an ESG factor. So, we don't think it's woke. We think it's part of like a very, very important part of studying the That in the risk set of
Mystery. Jean PERSON is changing that. She's also making ESG investing one of Wellington GPE 's top priorities. She says sustainability will transform the structure of financial markets. We don't think it's woke we think it's part of like a very very important part of studying the opportunity set and the risk set of of 5000 CARDINAL companies is that to say there's alpha and ESG or alpha and sustainability yeah absolutely do you believe that I believe that. Gina and I explore the strategies and perspectives that make Wellington GPE different and are defining her tenures CEO. Why she's still believes in globalization and having a presence in China GPE ? The virtues and challenges of active management. What to expect from Wellington GPE 's expansion into alternatives? The value of staying private. Here's my conversation with Jean Hines PERSON . Jean Wellington PERSON . One CARDINAL of the world's largest investment firms. But To Black Rock GPE , Sidelity Vanguard I could name others of course It's hardly known And certainly not well understood. Yeah. Why? For a long history, we have had a very low public profile. So, that that would be number one. I would say another reason is that we are a subvisor. So, our largest business one of our largest businesses to be a sub advisor to other companies that are well known, household name Such as Vanguard ORG and Fidelity ORG and T Row Price for example. So, we would we don't we don't market directly to consumers. We are the content provider. So you combine those two CARDINAL that we're not, we're not actually, we're not a household name, brand name, but in also with the same time, we had a very low public profile Is probably the reason most people don't know us. Is having a low public profile flying under the radar if you like being a little mysterious. Good for business. A competitive advantage. It probably served us well overtime. I think for our current if you if you look in 2022 DATE why am I talking to you today DATE ? I think the main reason is because we're a subvisor and we rely on partners. We're finding that it is important that that our brand is known for our content. I think Very importantly and maybe even more importantly I also think it helps with talents So it's very interesting that you know for years DATE and years DATE and years we would be we would try to have track talent and no one would ever know anything about us And that served us that was fine when we were a Boston GPE based company but when we began to globalize and and begin to hire investors all over the world that didn't serve us well. Hasn't it in the asset management industry the importance of having a brand most of the asset management industry has made a bet. Yeah. On sustainability. Yeah. But ESG is is under attack Right there are state governments. Here in the US GPE that are waging war on sustainable finance. They they they're calling it wokeism. What do you think of that? We're not investing on the same ability from a value based perspective. We're investing in our capabilities from a how do we research companies? How are these companies earning? It's gonna how what are the risks to the From ESG factors. What are the opportunities for companies from an ESG factor? So, we don't think it's woke. We think it's part of like a very, very important part of studying the Sat ORG in the risk set of of 5000 CARDINAL companies. Is that to say there's alpha and ESG or alpha and sustainability? Apps PERSON ? Yeah, absolutely. You believe that? I believe that. The alpha will all be in the nuance of company research. You know, what, you know, which companies and and in the life science tools industry for example are going to create products to help biologic manufacturing, be less admitting. You're only going to be able to figure that out by meeting with 20 1000 CARDINAL companies like we do every year. So, if you will of like building a moment Model PERSON and back testing it. Of what the factors were in the last decade DATE . Almost every CEO. In almost every industry. Grew up believing that globalization was good. And globalizing has been a priority. Yeah. Of Wellington GPE 's for
Why she's still believes in globalization and having a presence in China GPE The virtues and challenges of active management. What to expect from Wellington GPE 's expansion into alternatives? The value of staying private. Here's my conversation with Jean Hines PERSON . Jean Wellington PERSON One of the world's largest investment firms. But To Black Rock GPE , Sidelity Vanguard I could name others of course. It's hardly known. And certainly not well understood. Why? For a long history, we have had a very low public profile. So, that that would be number one. I would say another reason is that we are a subvisor. So, our largest business one of our largest businesses to be a sub advis Other companies that are well known, household names, such as Vanguard ORG and Fidelity ORG and T Row Price for example. So, we would we don't we don't market directly to consumers. We are the content provider. So, you combine those two CARDINAL that we're not, we're not actually, we're not a household name, brand name, but in also with the same time, we had a very low public Most people don't know us. Is Public profile flying under the radar if you like being a little mysterious. Good for business. A competitive advantage. It Served us well over time. I think for our current if if you look in 2022 DATE why am I talking to you today DATE ? We rely on partners. We're finding that it is important that that our brand is known for our content. I think Very importantly and maybe even more importantly I also think it helps with talents So, it's very interesting that, you know, for years DATE and years DATE and years, we would be And no one would ever know anything about us And that served us that was fine when we were a Boston GPE based company but when we began to globalize and and begin to hire investors all over the world that didn't serve us well. That's been a big change, hasn't it in the asset management industry, the importance Having a brand. Most of the asset management industry has made a bet. Yeah. On sustainability. Yeah. But suddenly ESG is is under attack Right there are state governments. Here in the US GPE that are waging war on sustainable finance. They they they're calling it wokeism. What do you think of that? We're not investing on the same ability from a value based perspective. We're investing in our capabilities from a how do we research companies? How are these companies earnings gonna how what are the risks to the News from ESG factors. What are the opportunities for companies from an ESG factor? So, we don't think it's woke. We think it's part of like a very, very important part of studying the That in the risk set of of 5000 CARDINAL companies is that to say there's alpha and ESG or alpha and sustainability? You believe that? You know, what, you know, which company is in Science tools industry for example are going to create products to help biologic manufacturing be less admitting you're only going to be able to figure that out by meeting with 20 1000 CARDINAL companies like we do every year. Us GPE if you will of like building a momentum model and back testing it. Of what the factors were in the last decade DATE . Almost every CEO. In almost every industry. Grew up believing that globalization Was good. And globalizing has been a priority. Yeah. Of Wellington GPE 's for. Yeah. 15 years DATE . Yeah. Is that still the case Yes, I would, I would suspect that as at the end of my tenure at Wellington GPE instead of having 30% PERCENT of our employees in Europe LOC and Asia LOC , it could be closer to 40% PERCENT of our employees. So, we are deliberately and intentionally continuing into invested in our offices around the globe. But you're The deglobilization is we're in a period of of regime change and declabilization. There is great investment talent all over the globe. Really great investment talent. We're we're we don't have a monopoly. We use.
Been more importantly I also think it helps with talents So it's very interesting that you know for years DATE and years DATE and years we would be we would try to have a track talent and no one would ever know anything about us And that served us that was fine when we were a Boston GPE -based company but when we began to globalize and and begin to hire investors all over the world that didn't serve us well. Hasn't it in the asset management industry the importance of having a brand most of the asset management industry has made a bet yeah on sustainability yeah But suddenly ESG is is under attack. Our state governments. Yeah. Here in the US GPE that are War on sustainable finance. They they're calling it wokeism. What do you think of that? We're not investing on the same ability from a value based perspective. We're investing in our capabilities from a how do we research companies? How are these companies earning? It's gonna how what are the risks to the companies from ESG factors? What are the opportunities or From an ESG factor. So, we don't think it's woke. We think it's part of like a very, very important part of studying the That in the risk set of of 5000 CARDINAL companies. Is that to say there's alpha and ESG or alpha and sustainability? Yeah, absolutely. You believe that? Alpha I'll be in the nuance of company research You know, what, you know, which companies in Science ORG tools and disrefer example are going to create products to help Manufacturing. Be less admitting. You're only going to be able to figure that out by meeting with 20 1000 CARDINAL companies like we do every year. You will of like building a momentum model and back testing it. Of what the factors were in the last decade DATE . Almost every CEO In almost every industry. Grew up believing that globalization It. Globalizing has been a priority. Yeah. Of Wellington GPE 's for. Yeah. 15 years Is that still the case? Wellington GPE instead of having 30% PERCENT of our employees in Europe LOC and Asia LOC it could be closer to 40% PERCENT of our employees so we are deliberately and intentionally continuing into invested in our offices around the globe but you're right Globalization PERSON is we're in a period of regime change and deglobilization. I don't think that necessarily impacts our business into the extent that there is great investment talent all over the globe. Really great investment talent. We're we're we don't have a monopoly. We used to think we had a monopoly of investment talent in Boston GPE and that clearly wasn't the You know, the reason we began to globalize our investment platform is is that the world was expanding the number of companies that were in Europe LOC and Asian NORP . Who are we to say that we're gonna follow all those from our Boston GPE office That was the reason we began to expand and I think that is still true that we are, this is a global firm, this is a global economy, and even if if there are certain trends that are de globalizing. There is still a world there for us to either think about from a company perspective or think about from a from an economic from an economic perspective. China GPE has become And is still becoming an increasingly complex place in which to do business. How do you manage that? So we have a presence in our Hong Kong GPE office and we have a small presence in our China GPE and in in China GPE Rashang High office. We are expanding our license to be able to invest in in the onshore China GPE . Right now, it's small. But with an important place for us to do research. Are you already starting to do anything differently because clients are Concerned about inflation because of the impact on their portfolios of rising rates because of the potential for a recession Long lived it may be. Oh I think our clients have not made major changes. There's definitely more interest in our our commodities capabilities. Our inflation capabilities, our value, investing capabilities, which have been out of favor and and unfortunately, for for us, we continue doing More interest than they have had in the past
An ESG factor. So, we don't think it's woke. We think it's part of like a very, very important part of studying the That in the risk set of of 5000 CARDINAL companies. Is that to say there's alpha and ESG or alpha and sustainability? Yeah, absolutely. You believe that? Alpha I'll be in the nuance of company research You know, what, you know, which companies in in the life science tools industry for example are going to create products to help Biologic PERSON manufacturing be less admitting you're only going to be able to figure that out by meeting with 20 1000 CARDINAL companies like we do every year. If you will of like building a momentum model and back testing it. Of what the factors were in the last decade DATE . Almost every CEO In almost every industry Grew up believing that globalization And globalizing has been a priority. Yeah. Of Wellington GPE 's for 15 years DATE . Yeah. Is that Yes I would I would suspect that as at the end of my tenure at Wellington GPE instead of having 30% PERCENT of our employees in Asia LOC . It could be closer to 40% PERCENT of our employees. So, we are deliberately and intentionally continuing into invested in our offices around the globe. But you're right. The De Globalization ORG is we're in a period of of regime change and deglobilization. I don't think that necessarily impacts our business and to the extent There is great investment talent all over the globe. Really great investment talent. We're we're we don't have a monopoly. We used to think we had a monopoly of investment talent in Boston GPE and that clearly wasn't the case. You know, the reason we began to globalize our investment platform is is that the world was expanding the number Who are we to say that we're gonna follow all those from our Boston GPE office That was the reason we began to expand and I think that is still true that we are is a global firm. This is a global economy and even if if there are certain trends that are de globalizing. There is still a world there for us to either think about from a company perspective or think about from a from an economic from an economic perspective. China GPE has become And is Coming and increasingly complex place in which to do business How do you manage that? So, we have a presence in our Hong Kong GPE office and we have a small presence in our China GPE and in China GPE Through saying hi office we are expanding our license to be able to invest in in the onshore China GPE right now it's small but with an important place for us to do research are you already starting to do anything differently because clients are Concerned about inflation because of the impact on their portfolios of rising rates because of the potential for a recession however long lived it may be oh I think Clients have not made major changes there's definitely more interest in our our commodities capabilities our inflation capabilities our value investing capabilities which have been out of favor and and unfortunately for for us we continue to To those teams. More interest than they have had in the past Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so software is come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or rob Whether or not a human ever gets their eyes on it. That might not be totally inclusive or not be Concerns about how this technology could exacerbate discrimination. The FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ?
Almost every industry Grew up believing that globalization was good And globalizing has been a priority. Yeah. Of Wellington GPE 's for. Yeah. 15 years DATE . Yeah. Is that still the case? Yes, I would, I would suspect that as at the end of my tenure at Wellington GPE instead of having 30% PERCENT of our employees in Europe LOC and Asia LOC , it could be closer to 40% PERCENT of our employees. So, we are deliberately and intentionally continuing into invested in our offices around the globe. But There is great investment talent all over the globe. Really great investment talent. We're we're we don't have a monopoly. We used to think we had a monopoly of investment talent in Boston GPE and that clear Wasn't the case. You know, the reason we began to globalize our investment platform is is that the world was expanding the number of companies that were in Europe LOC and Asian NORP . Who are we to say that we're gonna follow all those from our Boston GPE office That was the reason we began to expand and I think that is still true that we are this is a global firm. This is a global economy and even if if there are certain trends that are deglobalizing. There is still a world there for us either think about from a company perspective or think about from a from a economic from an economic perspective. China GPE has become And is still becoming an increasingly complex place in which to do business. How do you manage that? So we have a presence in our Hong Kong GPE office and we have a small presence in our China GPE and and in China Right now it's small but it's an important place for us to do research are you already starting to do anything differently because clients are Concerned about inflation because of the impact on their portfolios of rising rates because of the potential for a recession Long lived it may be. Oh I think our clients have not made major changes. There's definitely more interest in our our commodities capabilities, our inflation capabilities, our value, investing capabilities, which have been out of favor and and unfortunately for for us, we continue to More interest than they have had in the past Companies now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or rob Is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? In the coming months DATE do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Wellington GPE is an active manager Texting? No. How come that's not our core skill set going back to what is our core skills that our core skill set is being a research based And having these teams
Our business into the extent that there is great investment talent all over the globe. Really great investment talent. We're we're we don't have a monopoly. We used to think we had a monopoly of investment talent in Boston GPE and that clearly wasn't the case. You know, the reason we began to globalize our investment platform is is that the world was expanding the number of Beneath that were in Europe LOC and Asian NORP who are we to say that we're gonna follow all those from our Boston GPE office That was the reason we began to expand and I think that is still true that we are is a global firm. This is a global economy and even if if there are certain trends that are declabilizing. There is still a world there for us to either think about from a company Or think about from a from an economic from an economic perspective. China GPE has become And is still becoming an increasingly complex place in which to do business. How do you manage that? So we have a presence in our Hong Kong GPE office and we have a small presence in our China GPE and and in China GPE We're saying hi office. We are expanding our license to be able to invest in in the onshore China GPE . Right now, it's small. But with an important place for us to do research. Are you already starting to do anything differently because clients are Concerned about inflation because of the impact on their portfolios of rising rates because of the potential for a recession however long lived it may be I think our clients have not made major changes. There's definitely more interest in our our commodities capabilities, our inflation capabilities, our value, investing, capabilities, which have been out of favor and and fortunately for for We continue to invest in those teams but those are probably on the margin more interest than they have had in the past. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or rob Gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. For the FTC ORG , I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE do you see that coming through We will not just cut and run. The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Wellington GPE is an active manager. No indexing? No. No passives? No. How come? That's not our core skill set going back to what is our core skills that our core skill set is being a research based And having these teams of of portfolio managers with different skill sets that practice their philosophy and process. There were research based content company generating insights about the world. Let's completely opposite of passive investing. Am I correct in saying? That the implicit promise to investors and actively managed Is that they'll either get alpha I beat the market. Yeah. Or better risk adjusted returns. Yeah I I think for us that it would I think Clients are asking for both of us, right? Hey portal
Unfortunately, for, for us, we continue to invest in those teams. But those are probably on the margin more interest than they have had in the past. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or rob Gonna decide whether or not a human ever gets their eyes on it. Segment of the population that might not be totally inclusive or not be Concerns about how this technology could exacerbate discrimination. Really FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? In the coming months DATE do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Wellington GPE is an active manager No no passives no. How come? That's not our core skills that going back to what is our core skills that our core skill set is being a research based And having these teams of of portfolio managers with different skill sets that practice their philosophy and process. There were research-based content company generating insights about the world. Let's completely opposite of passive investing. Am I correct in saying that the implicit promise to investors and actively managed Is that they'll either get alpha I beat the market. Yeah. Or better risk adjusted returns. Yeah I I think for us that it would I think Clients are asking for both of us, right? They're asking clients for it all. Alpha and risk adjusted returns and that's Post a full financial crisis. Risk the pathway returns has become more important. But you go back to the basics. If you can generate 100 CARDINAL basis points of Far ORG a 200 CARDINAL basis points of alpha over indeceased that is a tremendous compounding effect. The reality, however, is that a cross the asset management industry, the active. Yeah. Investment management industry. Alpha is oh or sometimes negative after fees and the returns aren't any better on a risk adjusted So, if that remains the case, what is the future for active management? We need to earn a return. We need to earn it. We need to earn that alpha. So, that's that's what we're trying to do. We're trying to we've created an environment where we have this and I I do mean this. We have an incredible investment ecosystem. We don't have a CIO. We have an 600 CARDINAL An investment ecosystem that that collaborates that shares ideas that we're different perspective, different opinions on the same subject are welcome and thrive. If we can continue to do that and that's that, that's the input. Like, can we do that? Then, hopefully, our output over time. Well, generate those returns. Private Assets and alternatives. Yeah. Are still a small piece. Yeah. Of Wellington GPE 's $ one MONEY . 20 billion CARDINAL in NAUM. How do you grow those parts of the business? Yeah. When the competitors are large? Established and in many cases, excellent at what they do. Into the private business in 2014 DATE and so our first ORDINAL fund, our first ORDINAL , first group of fund is now on. It's fourth ORDINAL fund. So, we. That was the the growth equity initiative. Yeah, so we have four CARDINAL by the end of this year DATE , we're gonna have four CARDINAL platforms. Growth equity Biotech climate technology and investing in diverse
Trust them to self regulate AI In the coming months WORK_OF_ART . We will not just cut The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Wellington GPE is an active manager No indexing. How come that's not our core skill set going back to what is our core skills that our core skill set is being a research based Portfolio manager with different skill sets that practice their philosophy and process There were research based content company generating insights about the world. Let's completely opposite of passive investing. Am I correct in saying that the implicit promise to investors and actively managed products? Is that they'll either get alpha? I'd beat the market. Yeah. Or better risk adjusted returns. Yeah I I think for us that it would I think you you if it's clients are asking for both of us right I'm asking clients for it all alpha Alpha and risk adjusted returns and that's postful financial crisis. Risk the pathway returns has become more important. But you go back to the basics. If you can generate 100 CARDINAL basis points of alpha, a 200 CARDINAL basis points of alpha, over indeceased, that is a tremendous compounding effects. The reality, however Is that across the asset management industry the active investment management Alpha PRODUCT is oh or sometimes negative after fees and the returns aren't any better on a risk adjusted basis. So, Remains the case. What is the future for active management? We need to earn a return. We need to earn it. We need to earn that alpha. So, that's that's what we're trying to do. We're trying to we've created an environment. We already have this and I I do mean this. We have an incredible investment ecosystem. We don't have a CIO. We have an 600 CARDINAL person investment eco That call that collaborates that shares ideas that we're different perspective, different opinions on the same subject are welcome and thrive. If we can continue to do that and that's that that's the input. Like, can we do that? Then, hopefully, our output over time will generate those returns. Private assets and altern Are still a small piece. $ One MONEY . 20 billion CARDINAL in In a UM ORG . How do you grow those parts of the business? Yeah. When the competitors are large? Established and in many cases, excellent at what they do. Into the private business in 2014 DATE and so our first ORDINAL fund, our first ORDINAL , first group of fund is now on. It's fourth ORDINAL fund. So, we. That was the the growth equity initiative. Yeah, so we have four CARDINAL , by the end of this year DATE , we're gonna have four CARDINAL platforms Growth equity Climb PRODUCT a technology and investing in diverse founders. So, where else can we go? So, that's the question. Like, where else are we, what are our ambition? Yeah, where else does it? The world can we go? We have a very Public footprint and credit. So, there are areas that we should play on the private side and credit to be successful. We don't have to be, it's not about being number one CARDINAL or number two CARDINAL . It's about growing that part of the business and generating great results for clients that help, that help the overall business. Is true on on real estate so we have a very strong structure that capabilities as well as real estate equity capabilities so can we attract talent to help us all the compliment those on the public side you know longer term we we have we have we have One hybrid fund. You know, you could envision us having hybrid funds by sector that could that let's like a natural extensions. We have such strong sector teams. So, those assets are what right now. Altogether. Should be seven CARDINAL or eight 1 billion so it's a small part.
How come that's not our core skill set going back to what is our core skills that our core skill set is being a research based Portfolio manager with different skill sets that practice their philosophy and process. There were research-based content company generating insights about the world. Let's completely opposite of passive investing. Am I correct in saying that the implicit promise to investors in actively managed Is that they'll either get alpha I beat the market. Yeah. Or better risk adjusted returns. Yeah I I think for us that it would I think Clients are asking for both of us, right? Hey portal call Alpha Alpha LOC and risk adjusted returns and that's post a full financial crisis risk the pathway returns has become more important but you go back to the basics if you can generate 100 CARDINAL basis points of alpha a 200 CARDINAL basis points of alpha over indeceased that is a tremendous compounding effects the reality however Cross ORG the asset management industry the active investment management Alpha PRODUCT is oh or sometimes negative after fees and the returns aren't any better on a risk-congested basis. So, if that remains the case, what is the For active management. We need to earn a return. We need to earn it. We need to earn that alpha. So, that's that's what we're trying to do. We're trying to we've created an environment. We already have this and I I do mean this. We have an incredible investment ecosystem. We don't have a CIO. We have an 600 CARDINAL person investment ecosystem that that Different ORG opinions on the same subject are welcome and thrive. If we can continue to do that and that's that that's the input. Like can we do that? Then hopefully our output over time will generate those returns. Private assets and alternatives. Yeah. Are still a small Yeah. Of Wellington GPE 's $ one MONEY . 20 billion in In a UM ORG . How do you grow those parts of the business? Yeah. When the competitors are large? Established and in many cases, excellent at what they do. Into the private business in 2014 DATE and so our first ORDINAL fund, our first ORDINAL , first group of fund is now on. It's fourth ORDINAL fund. So, we. That was the the growth equity initiative. Yeah, so we have four CARDINAL , by the end of this year DATE , we're gonna have four CARDINAL platform Growth equity Climb PRODUCT a technology and investing in diverse founders. So, where else can we go? So, that's the question like, where else are where what are our ambitions? Overall, can we go? We have a very Public footprint and credit. So, there are areas that we should play on the private side and credit. To be successful, we don't have to be, it's not about being number one CARDINAL or number two CARDINAL . It's about growing that part of the business and generating great results for clients that help, that help the overall business. Same is true on on real estate so we have a very strong structured debt capabilities as well as real estate equity capabilities so can we attract talent to help us all the compliment those on the public side you know longer term we should we have we have we have One hybrid fund. You know, you could envision us having hybrid funds by sector that could that let that like a natural extensions. We have such strong sector teams. So, those assets are what right now. Altogether. Should be seven CARDINAL or eight 1 billion so it's a small part but still an important part of the business. It's an alternatives. Privates are an alternative. They're seven to eight CARDINAL . The liquid alternatives. We've been in that Been in the long short business since 1994 DATE . Mm hmm. And that that business is approximately 30 1 billion MONEY . Okay. So, put them together and you're getting close to 40. Gina, there aren't many people In your position who started out. No. As administrative assistants. And rose to become CEO at the same company really the only place you've ever worked yes Tell me your story. So, go back to college. So, first ORDINAL of all, I, my parents were Irish NORP immigrants My mother raised six CARDINAL kids and my father was a Brooklayer PERSON . So, I didn't know anything about stock market. We didn't talk about stocks around the kitchen table at my house. But I I would say.
Clients are asking for both of us right Clients want it all And Alpha and risk adjusted returns and that's postful financial crisis. Risk the pathway returns has become more important. But you go back to the basics. If you can generate 100 CARDINAL basis points of alpha, a 200 CARDINAL basis points of alpha over indeceased. That is a tremendous compounding effects. The However, is that across the asset management industry, the active investment management industry, Is oh or sometimes negative after fees and the returns aren't any better on a risk adjusted basis so Remains the case. What is the future for active management? We need to earn a return. We need to earn it. We need to earn that alpha. So, that's that's what we're trying to do. We're trying to we've created an environment. We already have this and I I do mean this. We have an incredible investment ecosystem. We don't have a CIO. We have an 600 CARDINAL person investment eco Shares ideas that we're different perspective different opinions on the same subject are welcome and thrive if we can continue to do that and that's that that's the input like can we do that then hopefully our output over time will generate those returns private assets and altern Are still a small piece. $ One MONEY . 20 billion CARDINAL in In a UM ORG . How do you grow those parts of the business? Yeah. When the competitors are large? Established and in many cases, excellent at what they do. Into the private business in 2014 DATE and so our first ORDINAL fund, our first ORDINAL , first group of fund is now on, it's fourth ORDINAL fund. So, we. That was the the growth equity initiative. Yeah, so we have four CARDINAL , by the end of this year DATE , we're gonna have four CARDINAL platforms Growth equity Climb PRODUCT a technology and investing in diverse founders. So, where else can we go? So, that's the question. Like, where else or where, what are our ambition? Yeah, where else does it? The world can we go? We have a very Public footprint and credit. So, there are areas that we should play on the private side and credit to be successful. We don't have to be, it's not about being number one CARDINAL or number two CARDINAL . It's about growing that part of the business and generating great results for clients that help, that help the overall business. The same is true on on real estate. So, we Very strong structured debt capabilities as well as real estate equity capabilities so can we attract talent to help us all though compliment those on the public side you know longer term we we have we have a we have one hybrid fund you know you could envision Having hybrid funds by sector that could that like that's like a natural extensions where you have such strong sector teams. So those assets are what right now. Altogether. Should be seven CARDINAL or eight 1 billion so it's a small part but still an important part of the business. It's an alternatives. Privates and alternatives are seven CARDINAL , eight, the liquid alternatives. We've been in that, we've been in the long short Since 1994 DATE and that that business is approximately 30 1 billion MONEY . Okay. So, surprise together and you're getting close to 40 CARDINAL . Many people In your position who started out as administrative assistant And rose to become CEO at the same company really the only place you've ever worked yes Tell me your story. So, go back to college. So, first ORDINAL of all, I, my parents were Irish NORP immigrants My mother raised six CARDINAL kids and my father was a brick layer. So, I didn't know anything about stock market. We didn't talk about stocks around the kitchen table at my house but I I would say they were very focused on education and so I Practically a full scholarship to Welsie College ORG . Which was an amazing experience. In in as one of those, one of the classes I took, which was in my junior year, it was sociology. It was a sociology class That you had to get a job. I recall it has a class you have to take. This was the class you had to take but I just happened to get a job at a brokerage firm in Boston GPE . And so that was my first ORDINAL introduction to the stock market and I did not like the cold calling part of the business but I was just fascinated by the stock market and that's how I found my way to Wellington GPE .
Both equity initiatives. Yeah, so we have four CARDINAL , by the end of this year DATE , we're gonna have four CARDINAL platforms. Growth equity Biotech climate technology and investing in diverse founders. So, where else can we go? So, that's the question like where else or where are ambitions? Yeah, where else does it where else can we go? We have a very Public footprint and credit. So, there are areas that we should play on the private side and credit to be successful. We don't have to be, it's not about being number one CARDINAL or number two CARDINAL . It's about growing that part of the business and generating great results for clients that help that help the overall business. The same is true on on real estate so we have a very strong structured debt capabilities as well as real estate equity capabilities. So can we attract talent to help us all the compliment those on the public side? You know, longer term, we we have we have a we One hybrid fund. You know, you could envision us having hybrid funds by sector that could that's like a natural extensions. We have such strong sector teams. So, those assets are what right now. All together. By the end of the year DATE , they should be seven CARDINAL or eight 1 billion. So, it's a small part. But still an important part of That that's that's privates and alternatives. Privates and alternatives are seven to eight CARDINAL . The liquid alternatives. We've been in that we've been in the long short business since 1994 DATE and that that business is approximately 30 1 billion MONEY . Okay. So supplies together in your getting To 40 CARDINAL . People. In your position who started out As administrative assistants. Yeah. And Rose PERSON to become CEO at the same company. Really, the only place you've ever worked. Yes. Tell me your story. So, go back to college. So, first ORDINAL of all, I, my parents were Irish NORP immigrants. My mother raised six CARDINAL kids and my father was a brick layer. So, I didn't know anything about stock market. Around the kitchen table at my house but I I would say they were very focused on education and so I Got practically a full scholarship to Welsie College ORG . Which was an amazing experience. And and as one of those one of the classes I took which was in my junior year it was sociology. It was a sociology class That you had to get a job. I recall it has a class you have to take. This was the class you had to take but I just happened to get a job at a brokerage firm in Boston GPE . And so that was my first ORDINAL introduction to the stock market and I did not like the cold calling part of the business but I was just fascinated by the stock market and that's how I found my way to Wellington GPE and Wellington GPE was just beginning to expand they were higher higher in college graduates as administrative So that story. Start to manage money. Yup. And at what point did you realize that this firm was interested in cultivating you as a leader? So, I started managing money in 1997 DATE and so and every year from then, I began to manage more money in 1999 DATE . I I was able to run a Tech ORG portfolio 2000 DATE . Those portfolio management skills. Hey Again, my leadership journey right around the time I moved to London GPE . So, I moved my family to London GPE in 2007 DATE and 2008 as we began to globalize our investment platform. It was really about culture. It was also becoming more independent from my cocoon here in Boston GPE . I'm from a very large Family PRODUCT a big Irish NORP family I had I had my my my life was planned out I had social events all the time barbecues here so I actually do think moving to London GPE being alone with my small family unit Away PERSON from the person I worked with for 16, 17 years DATE , was the beginning of my leadership journey. And then I became managing partner in 2014 DATE . You're still running the world's largest health care fund. Yes. How's that possible? Managing 46 1 million dollars MONEY With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. What also being the CEO?
All together. By the end of the year DATE , they should be seven CARDINAL or eight 1 billion. So, it's a small part. But still an important part of the That that's that's privates and alternatives. Privates and alternatives are seven to eight CARDINAL . The liquid alternatives. We've been in that we've been in the long short business since 1994 DATE and that that business is approximately 30 1 billion MONEY . Okay. So Who started out as administrative assistants Comes CEO at the same company really the only place you've ever worked yes Tell me your story. So, go back to college. So, first ORDINAL of all, I at my parents were Irish NORP immigrants. My mother raised six CARDINAL kids and my father was a brick layer. So, I didn't know anything about stock market. We didn't Around the kitchen table at my house but I I would say they were very focused on education and so I Practically a full scholarship to Welsie College ORG . Which was an amazing experience. In in as one of those one of the classes I took which was in my junior year it was sociology. It was a sociology class That you had to get a job. Every college has a cost you have to take. This was the class you had to take but I just happened to get a job at a brokerage firm in Boston GPE . And so that was my first ORDINAL introduction to the stock market and I did not like the cold calling part of the business but I was just fascinated by the stock market and that's how I found my way to Wellington GPE and Wellington GPE was just beginning to expand they were higher higher in college graduates as administrative So that story. Start to manage money. Yeah. And at what point did you realize that this firm was interested in cultivating you as a leader? So, I started managing money in 1997 DATE and so and every year from then, I began to manage more money in 1999 DATE . I I was able to run a Tech ORG portfolio 2000 DATE . Those portfolio management skills. Hey Again, my leadership journey right around the time I moved to London GPE . So, I moved my family to London GPE in 2007 DATE and 2008 as we began to globalize our investment platform. It was really about culture. It was also becoming more independent from my cocoon here in Boston GPE . I'm from a very large Family PRODUCT a big Irish NORP family I had I had my my my life was planned out I had social events all the time barbecues here so I actually do think moving to London GPE being alone with my small family unit Away PERSON from the person I worked with for 16, 17 years DATE , was the beginning of my leadership journey. And then I became managing partner in 2014 DATE . You're still running the world's largest health care fund. Yes. How's that possible? Managing 46 1 million dollars MONEY With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. What also being the CEO? Yup. And while also being I hasten to add a mom to four CARDINAL daughters. How do you do that? So, everyone has super strengths, right? Everyone, everyone, everyone has super strengths. One CARDINAL of my super strengths is your superpower. Superpower is organization. Is organized and and sort of a superpower and processes. I think it would be, it would probably be impossible. The product may read made in the USA GPE but Microsoft ORG such a Nadella IBM's ORG Arvin Krishna PERSON my current technology Sanjay Mayhotra PERSON And that doesn't count Indians NORP running companies all over the world. Incredibly competitive education system if you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later
Kids and my father was a brick layer. So, I didn't know anything about stock market. We didn't talk about stocks around the kitchen table at my house but I I would say they were very focused on education and so I Practically a full scholarship to Welsie College ORG . Which was an amazing experience. In in as one of those, one of the classes I took, which was in my junior year, it was sociology. It was a sociology class That you had to get a job. I recalled how the class you have to take. This was the class you had to take. But I just happened to get a job at a brokerage firm in Boston GPE . And so that was my first ORDINAL introduction to the stock market and I did not like the cold calling part of the business but I was just fascinated by the stock market and that's how I found my way to Wellington GPE and Wellington GPE was just beginning to expand they were higher higher in college graduates as administrative Systems. Did you start to manage money? Yeah. And at what point did you realize that this firm was interested in He was a leader. So, I started managing money in 1997 DATE So in every year DATE from then I began to manage more money in 1999 DATE I I was able to run a biotech portfolio and in 2000 DATE I was able to run a sleeve of the Hartford Healthcare Fund ORG and then the decade of the 2000 DATE 's was really like honing those research those portfolio management skills. I began my leadership journey Right around the time I moved to London GPE . So, I moved my family to London GPE in 2007 DATE and 2008 as we began to globalize our investment platform. It was really about culture. It was also becoming more independent from my cocoon here in Boston GPE . I'm from a very large family, a big Irish NORP family. I I had my my my life was planned out. I had social events all the time. Barbecue ORG 's here. So, I actually do think moving To London GPE being alone with my small family unit Away PERSON from the person I worked with for 16, 17 years DATE , was the beginning of my leadership journey. And then I became managing partner in 2014 DATE . The world's largest health care fund. Yes. How's that possible? With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. While also being the CEO. Yup. And while also being I hasten to add a mom to four CARDINAL daughters. How do you do that? Everyone has super strengths, right? Everyone, everyone, everyone has super strengths. One CARDINAL of my super strengths is. Superpower is organization. If I was Organized and and sort of a superpower and processes. I think it would be it would probably be impossible. Made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun PERSON dark patch eye Microsoft ORG Sacha Nadella IBM's ORG Arvin Krishna PERSON micron technology Sanjay Mehotra PERSON and that's Gap VM ORG ware and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a
Fascinated by the stock market and that's how I found my way to Wellington GPE and Wellington GPE was just beginning to expand they were higher higher in college graduates as administrative assistants so that story Start PRODUCT to manage money. Yeah. And at what point did you realize that this firm was interested in cultivating you as a leader? So, I started managing money in 1997 DATE and so and every year from then, I began to manage more money in 1999 DATE . I I was able to run a biotech portfolio And in 2000 DATE I was able to run a sleeve of the Hartford Healthcare Fund ORG and then the decade of the 2000 DATE 's was really like honing those research those portfolio management skills I will say I began my leadership Right around the time I moved to London GPE . So, I moved my family to London GPE in 2007 DATE and 2008 as we began to globalize our investment platform. It was really about culture. It was also becoming more independent from my cocoon here in Boston GPE . I'm from a very large family, a big Iri GPE My life was planned out. I had social events all the time. Barbecues here. So, I actually do think moving to London GPE , being alone with my small family unit. Away from the person I worked with for 16, 17 years DATE , was the beginning of my leadership journey. And then I became managing partner in 2014 DATE . You're still running the world's largest health care fund. Yes. How was that possible? Managing 46 1 million dollars MONEY With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. What also being the CEO? Yup. And while also being I hasten to add a mom to four CARDINAL daughters. How do you do that? So, everyone has super strengths, right? Everyone, everyone, everyone has super strengths. One CARDINAL of my super strengths is your superpower. Superpower is organization. Is organized and and sort of a superpower and processes. I think it would be, it would probably be impossible. The product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG such a Nadella IBM's ORG Arvin Krishna PERSON my current technology Sanjay Mehotra PERSON and that's just How did the chief executives of Adobe ORG Deloitte Gap VM wear and that doesn' Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Coastal ORG points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up about Reforce of the immigrants receiving coveted H one CARDINAL B visas for the US GPE and it's We've talked About The virtues of being a private partnership Have you ever wondered to yourself of Wellington GPE would be better off Public company? No. Why not? I've I follow public companies my whole career and from a lot of public companies you have to really focus On Continue GPE to operate with a lot.
With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. While also being the CEO. Yup. And while also being I hasten to add a mom to four CARDINAL daughters. How do you do that? Everyone has super strengths, right? Everyone, everyone, everyone has super strengths. One CARDINAL of my super strengths is. Superpower is organization. If i Organized and and sort of a superpower and processes. I think it would be it would probably be impossible. Product may read made in the USA GPE but Made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG Sacha Nadella IBM's ORG Arvin Krishna PERSON micron technology Sanjay Mehotra PERSON and that's And that doesn't count Indians NORP running companies all over the world. Incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a We've talked About The virtues of being a private partnership Have you ever wondered to yourself if Wellington GPE would be better off Public company? No. Why not? I follow public companies my whole career and from a lot of public companies you have to really focus And it's more short-term focus than it was 15 or 20 years ago DATE and the best companies continue to operate with a long-term focus. Our private partnership just allows us to be long-term focused. The other question you would ask, what would ever make us go Dramatic change in the industry where we need a capital in a way we don't need today DATE . This company makes a lot of money We are in the asset management business and if we do well and we generate alpha for our clients it is a profitable business. I was Fishing for something a little bit different which is along the lines of this. There aren't many. Public be treated companies. Yeah. With Management in the neighborhood of Wellington GPE 's. Only handful. But they make, you know, those with a one CARDINAL handle on the trillions. More between one and three 1 billion dollars MONEY a year. In net income. Is that ballpark for Wellington GPE too? You're not gonna get me there. It's a nice try. Participate in the asset management industry We have a You know a similar We're not the same as everyone else. We don't have the we don't we are we are an investment management business. So we earn a fee for managing the money. We're not we're not heavily distribution oriented business. All of our compensation though is geared towards performance. So everyone at Wellington GPE will do better if we For clients and that's the key. How do you decide who gets paid what? That's the other part of our partnership. The three CARDINAL managing partners. Which I've
Competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted H one CARDINAL B visas for the US GPE . And it's a We've talked About The virtues of being a private partnership Have you ever wondered to yourself if Wellington GPE would be better off Public company? No. Why not I've I follow public companies my whole career and from a lot of public companies you have to really focus On And it's more short-term focus than it was 15 or 20 years ago DATE and the best companies continue to operate with a long-term focus. Our private partnership just allows us to be long-term focused. The other question you would ask, what would ever make us go public? It would probably be some drama Change in the industry where we need to capital in a way we don't need today DATE . This company makes Alpha for our clients it is a profitable business I was Fishing for something a little bit different which is along the lines of this. There aren't many. Public betrayed companies. Yeah. With Under management in the neighborhood of Wellingtons ORG . Only handful. But they make You know those with a one CARDINAL handle on the trillions CARDINAL Make somewhere between one and three 1 billion dollars MONEY a year. In net income Is that ballpark for Wellington GPE too? You're not gonna get me there It's a nice try. Say is that we are we participate in the asset management industry We have a A similar Heavily distribution oriented business. All of our compensation though is geared towards performance. So, everyone at Wellington GPE will do better if we For clients and that's the key. How do you decide who gets paid what? So, that's that's the other part of our partnership, the three CARDINAL managing partners, Which I've been won since 2014 DATE . Distribute or determine the profit how the profits are split at the firm. So you have to imagine it has to be tremendous trust in the three CARDINAL mansion partners and that trust means I know they're they trust us to know what's going on in the business. Who's having impact that we're not gonna play favorites? That we're Really fair. Have been the ability to become a partner at Wellington GPE A really critical part of our Talent has always been One CARDINAL of the hardest Maybe the hardest problem to solve for in the investment business. And that was true before the pandemic, right? And the demands that it has created for flexibility and the demands that it has created for diversity. How hard is the talent problem now i think the pandemic has shown us and it probably should show most companies that it's not about buildings it's about the culture it's about shared values In the future we're gonna be more flexible about where our talent sits how much of Wellington GPE 's success in the future depends on how well you integrate technology I think 5 years DATE from now we won't
We've talked About The virtues of being a private partnership Have you ever wondered to yourself if Wellington GPE would be better off Public company? No. Why not? I've I follow public companies my whole career and from a lot of public companies you have to really focus On And it's more short-term focus than it was 15 or 20 years ago DATE and the best companies continue to operate with a long-term focus. Our private partnership just allows us to be long-term focused. The other question you would ask, what would ever make us go public and it would probably be some drama In the industry where we need a capital in a way we don't Day. This company makes a lot of money, doesn't it? Alpha for our clients. It is a profitable business I was Fishing for something a little bit different which is along the lines of this. There aren't many. Public betrayed companies. Yeah. With Assets under management in the neighborhood of Wellington GPE 's. Only handful. But they make You know those with a one CARDINAL handle on the trillions CARDINAL Make somewhere between one and three 1 billion dollars MONEY a year. In net income Is that ballpark for Wellington GPE too? You're not gonna Me there. It's a nice try. Say is that we are we participate in the asset management industry We have a You know a similar We don't have the we are we are an investment management business so we earn a fee Damaging the money. We're not, we're not heavily distribution oriented business All of our compensation though is geared towards performance So everyone at Wellington GPE will do better if we perform for clients and that's the key. How do you decide who gets paid what? That's the other part of our partnership. The three CARDINAL managing partners which I've been won since 2014 DATE . Distribute or determine the profit how the profits are split at the firm. So you have to imagine there has to be tremendous trust in the three CARDINAL mansion partners and that trust means I know they're they trust us to know What's going on in the business? Who's having impact that we're not gonna play favorites? That we're gonna be really fair. The path to partners have been the ability to become a partner at Wellington GPE A really critical part of our ability to attract talent. Talent has always been. One CARDINAL of the hardest. Maybe the hardest problem to solve for in the investment business. And that was true before the pandemic, right? And the demands that it has created for flexibility and the demands that it has created for diversity. How hard is the talent problem now i think the pandemic has shown us and it probably should show most companies that it's not about buildings it's about the culture it's Shared NORP values. In the future, we're gonna be more flexible about where our talent sits. How much of Wellington GPE 's success in the future depends on how well you integrate technology? I think 5 years DATE from now, we won't have a technology department. We'll have technology will be integrated into Business and I'll give you some examples We have portfolio construction tools we have ways to screen Portfolio manager has a philosophy and process and they have AA tool that helps them screen based on that philosophy and process We have these tools now that are bring very qualitative things into a quantitative framework. We have our own internal risk portal So we have you continue to make that a greater and greater and we already talked about ESG and how much it's data oriented. How do you make that more and more part of the portfolio construction process? If we're if we're in a more comp World which I do believe we are in.
And it's more short-term focus than it was 15 or 20 years ago DATE and the best companies continued to operate with a long-term focus. Our private partnership just allows us to be long-term focused. The other question you would ask, what would ever make us go public? It would probably be some dramatic In the industry where we need a capital in a way we don't need today DATE . This company makes Money doesn't it? Alpha for our clients. It is a profitable business I was Fishing for something a little bit different which is along the lines of this. There aren't many. Public betrayed companies. Yeah. With Under management in the neighborhood of Wellington GPE . Only handful. But they make You know those with a one CARDINAL handle on the trillions CARDINAL Make somewhere between one and three 1 billion dollars MONEY a year. In net income Is that ballpark for Wellington GPE too? You're not gonna get me there It's a nice try. Say is that we are we participate in the asset management industry We have a A similar So we order fee for managing the money we're not we're not heavily distribution oriented business all of our compensation though is geared towards performance so everyone at Wellington GPE will do better if we For clients and that's the key. How do you decide who gets paid what? That's the other part of our partnership. The three CARDINAL managing partners. Which I've been one since 2014 DATE . Reviewed or determined the profit how the profits are split at the firm so you have to imagine it has to be tremendous trust in the three CARDINAL mansion partners and that trust means I know they're they trust us to know what's going on in the business who's having impact that we're not gonna play favorites that we're gonna be really fair the path to partners have been the ability to become a partner at Well Is a really critical Of our Talent has always been One CARDINAL of the hardest. Maybe the hardest problem to solve for in the investment business. And that was true before the pandemic, right? And the demands that it has created for flexibility and the demands that it has created for diversity How hard is the talent problem now i think the pandemic has shown us and it probably should show most companies that it's not about buildings it's about the culture it's about Shared NORP values. Technology. I think 5 years DATE from now, we won't have a technology department. We'll have technology will be integrated into running the business. And I'll give you some examples. We have portfo Construction tools we have ways to screen Portfolio manager has a philosophy and process and they have AA tool that helps them screen based on that philosophy and process. We have these tools now that are bring very qualitative things into a quantitative framework. We have our own internal risk portal. So we how do you continue to make that a greater and greater we already talked about ESG and how much it's data oriented how do you make that More part of the portfolio construction process. If we're if we're in a more complex world which I do believe we are in. A more complex investing world. Where it's not just about revenues and earnings and PE ORG . It's about a This mosaic of things are gonna impact the value of a company or the value of that return like what's the path of portfolio returns Is going to play a bigger and bigger part of that. There are A lot of acid managers. Who do you think of us Wellington GPE 's main competition Well I will say I've talked to quite a number of them in in my new role as CEO and I have a lot of respect for my peers Observation would be that they're all a little bit different, right? They're all a little bit different. But if you look, if you look at overtime, who has sort of a research process that's similar to us? Like I would say capital group, T rope
The other part of our partnership the three CARDINAL managing partners which I've been one since 2014 Reviewed or determined the profit how the profits are split at the firm so you have to imagine it has to be tremendous trust in the three CARDINAL mansion partners and that trust means I know they they trust us to know what's going on in the business who's having impact that we're not gonna play favorites that we're gonna be really fair the path to partners have been the ability to become a partner at Well Is a really critical part of our ability to attract talent. Talent has always been One CARDINAL of the hardest Maybe the hardest problem to solve for in the investment business. And that was true before the pandemic, right? And the demands that it has created for flexibility and the demands that it has created For diversity How hard is the talent problem now? I think the pandemic has shown us and it probably should show most companies that it's not about buildings. It's about the culture. It's about Values LOC . In the future, we're gonna be more flexible about where our talent sits. How much of Wellington GPE 's success in the future depends on how well you integrate technology? I think 5 years DATE from now, we won't have a technology department. We'll have technology just will be integrated into running the business. And I'll give you some examples. We have portfo Instruction tools we have ways to screen Portfolio manager has a philosophy and process and they have AA tool that helps them screen based on that philosophy and process We have these tools now that I bring very qualitative things into Rotate ORG a framework. Own internal risk portal We how do you continue to make that a greater and greater and we already talked about ESG and how much it's data oriented. How do you make that more and more part of the portfolio construction process? So if we're if we're in a more complex world, which I do believe we are in. A more complex investing world. Where it's not just about revenues and earnings It's about a this mosaic of things are gonna impact the value of a company or the value of that return like what's the path of portfolio returns A bigger and bigger part of that. There are About set managers. Yeah. Who do you think of as Wellington GPE 's main competition Well I will say I've talked to quite a number of them in my new role as CEO and I have a lot of respect for my peers Observation would be that they're all a little bit different, right? They're all a little bit different. But if you look, if you look at overtime, who has sort of a research process that's similar to us? Like I would say capital group, T Row Price ORG , some often in meetings with capital and T Row Prize, you know, Pimco on the fixing come side is probably a compet That we highly respect in in and run into from a client perspective those would be a few examples and and then on the private side it's the it's it would be you know many many small firms and on the long short side name three CARDINAL things you admire. At rival firms and wish willington could do as well. Alright. Well, this is okay, give me a minute TIME to think about this. I think that if you look at Black Rock LOC , they have, they use their As an advantage Interact with clients. I don't think anyone really in that in that way can compete with them. In terms of the competition with a lot and I think that that is the just very impressive. Capital group in there, in their There are they're distribution in the US GPE for example. Let they have a real. They have a very strong relationship with broker dealers. In the US GPE . That's also very impressive. If you look at some private firms, this is not so much direct competitors but firms that have been around for 20 years DATE . I think it's a real advantage if you've been on the private side. If you just have, if you've been around for quite a long period of time. So, obviously, firms like Sequoia ORG , where they're not doing exactly what we're doing But they just have sort of this No I've I'm studying them quite a bit just because we are How do we get? How do we be excellent in the private business? And there's a few of them that have just done such a good job. Over time. That's been very impressive.
Much it's data oriented. How do you make that more and more part of the portfolio construction process? If we're if we're in a more complex world which I do believe we are in a more complex investing world. Where it's not just about revenues and earnings and PE ORG . It's about This mosaic of things are gonna impact the value of a company or the value of that return like what's the path of portfolio returns Is going to play a bigger and bigger part of that. There are a lot of acid managers. Yup. Who do you think of us Wellington GPE 's main competition? Well I will say i've talked to quite a number of them in my new role as CEO and I have a lot of respect for my peers Observation would be that they're all a little bit different, right? They're all a little bit different. But if you look, if you look at overtime, who has sort of a research process that's similar to us? Like I would say capital group, T Row Price ORG , I'm often in meetings with capital and T Row Price, you know, Pimco on the fixing come side is probably a compet Many many small firms and on the long short side. Name three CARDINAL things you admire. At rival firms and wish willington could do as well. Alright. Well, this is okay, give me a minute TIME to think about this. I think that if you look at Black Rock LOC , they have they use their As an advantage Interact with clients. I don't think anyone really in that in that way can compete with them in terms of the competition with a lot and I think that that is just very impressive. Capital group in there in their There are there are distribution in the US GPE for example. Let they have a real they have a very strong relationship with broker dealers. In the US GPE . That's also very impressive. If you look at some private firms This is not so much direct competitors but firms that have been around for 20 years DATE . I think it's a real advantage if you've been on the private side. If you just have, if you've been around for quite a long period of time. So, obviously, firms like Sequoia ORG , where they're not doing exactly what we're doing. But they just have sort of this No. I'm studying them quite a bit just because we are How do we get? How do we be excellent in the private business? And there's a few of them that have just done such a good job. Overtime. It's been very impressive. Is growing this business important to you and to your fellow partners? Well, you know, we follow 5000 CARDINAL companies Always analyzing how our company's relative to their relative to their competition and their peers. So, we wanna we wanna win, right? So, we wanna do well. I'm also a strong believer in you can't aspire to grow just for growth sake you we have to be super focused on the inputs and if you do really well on the inputs you will grow as a firm the leadership team I think our partnership is very focused on that like if we have the right inputs and that means are we investing in talents Are we investing in new capabilities are we expanding in areas that we think will help our clients Then, hopefully, we will and we can deliver performance. We will grow. Let's talk about the legacy that you're in the process of defining. When you're colleagues and your clients. Yeah. Look back. On the jeans, hines era. Yeah. The CEO They'll say you accomplished what? Hire amazing talents We have made our collaborative investment ecosys Stronger and that we we have it been affirm it's growing so we've been able to expand the partnership and that we are delivering most importantly we're delivering Great outcomes to clients and maybe finally it's like to like it's more about like I do the previous CEOs of Don and figure out ways to strengthen Wellington GPE so that it's That we have another 40 50 years DATE the next set of CEOs can continue that this is a now this is a I'm just passing through in a steward of this firm that you know my almost 40 years DATE here whatever whatever I retire that that that I will know with you know know that this will that
Who has sort of a research process that's similar to us like I would say capital group T-road price. Probably a competitor that we highly respect in in and running to from a client perspective. Those would be a few examples and and then on the private side it's It's it would be, you know, many, many small firms and on the long short side. Name three CARDINAL things you admire. At rival firms and wish willington could do as well. Alright. Well, this is okay, give me a minute TIME to think about this. Think that if you look at Black Rock LOC they have they use their As an advantage Interact with clients. I don't think anyone really in that in that way can compete with them. In terms of the competition with a lot and I think that that is the just very impressive. Capital group in their in their There are they're distribution in the US GPE for example. Let they have a real. They have a very strong relationship with broker dealers. In the US GPE . That's also very impressive. If you look at some private firms, this is not so much direct competitors but firms that have been around for 20 years DATE . I think it's a real advantage. If you've been on the private side, if you just have, if you've been around for quite a long period of time. So, obviously, firms like Sequoia ORG , where they're not doing exactly what we're doing But they just have sort of this No I've I'm studying them quite a bit just because we are How do we get? How do we be excellent in the private business? And there's a few of them that have just done such a good job. Overtime. That's been very impressive. Is growing this business important to you and to your fellow partners? Companies Always analyzing how our company's relative to their relative to their competition and their peers. So, we wanna do, we wanna win, right? So, we wanna do well. I'm also a strong believer in you can't aspire to grow just for growth's sake you we have to be super focused on the inputs and if you do really well on the inputs you will grow as a firm the leadership team I think our partnership is very focused on that like if we have the right inputs and that means are we investing in talents Are we investing in new capabilities are we expanding in areas that we think will help our clients Then hopefully we will and we can deliver performance. We will grow. Let's talk about the legacy that you're in the process of defining. When your colleagues and your clients. Yeah. Look back. On the jeans, hinds era. Yeah. The CEO. They'll say you accomplished what? Hire amazing talents. Made our collaborative Ecosystem stronger and that we we have it been affirm as growing so we've been able to expand the partnership and that we are delivering most importantly we're delivering great outcomes to And maybe finally it's like to like it's more about like Can I do the previous CEOs have done and figure out ways to strengthen Wellington GPE so that it's That we have another 40, 50 years DATE , Passing through in a steward of this firm that you know my almost 40 years DATE here whatever whatever I retire that That I will know with you know, know that this will this firm will be very strong for the next 50 years DATE . Thank you very much. Thank you Eric PERSON . I really really enjoy our time. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods are transported to
Effects for my peers. Reservation would be that they're all a little bit different, right? They're all a little bit different. But if you look, if you look at overtime, who has sort of a research process that's similar to us? Like I would say capital group, T Row Price ORG , I'm often in meetings with capital and T-road price, you know, pimpco on the fixing come side is probably a competitor We highly respect and and and run into from a client perspective. Those would be a few examples and and then on the private side it's the it's it would be you know many many small firms and on the long short side. Name three CARDINAL things you admire. At Rival Firms and wish Wellington GPE could do as well. Alright. Well, this is okay, give me a minute TIME to think about this. I think that if you look at Black Rock LOC , they have they use their As an advantage Interact with clients. I don't think anyone really in that in that way can compete with them in terms of the competition with a lot and I think that that is just very impressive. Capital group in there in their There are there are distribution in the US GPE for example. Let they have a real. I have a very strong relationship with broker dealers in the US GPE . That's also very impressive. If you look at some private firms This is not so much direct competitors but firms that have been around for 20 years DATE . I think it's a real advantage if you've been on the private side. If you just have, if you've been around for quite a long period of time. So, obviously, firms like Sequoia ORG , where they're not doing exactly what we're doing. But they just have sort of this No I've I'm studying them quite a bit just because we are How do we get how do we be excellent in the private business and there's a few of them that have just done such a good job Overtime That's been very impressive. Is growing this business important to you and to your fellow partners? Well, you know, we follow 5000 CARDINAL companies. Always analyzing how our companies relative to their relative to their competition and their peers. So, we wanna do, we wanna win, right? So, we wanna do well. I'm also a strong believer in you can't aspire to grow just for growth sake you we have to be super focused on the inputs and if you do really well on the inputs you will grow as a firm the leadership team I think our partnership is very focused on that like if we have the right inputs and that means are we investing in talents Are we investing in new capabilities are we expanding in areas that we think will help our clients Then, hopefully, we will and we can deliver performance. We will grow. Let's talk about the legacy that you're in the process of defining. When your colleagues and your clients. Yeah. Look back. On the jeans, hinds era. Yeah. The CEO. They'll say you accomplished what? That we continue to hire amazing talents We have made our collaborative investment ecosys Stronger and that we we have it been affirm that's growing so we've been able to expand the partnership and that we are delivering most importantly we're delivering Great outcomes to clients and maybe finally it's like to like it's more about like Can I do the previous CEOs of Don and figure out ways to strengthen Wellington GPE so that it's That we have another 40 50 years DATE the next set of CEOs can continue that this is a now this is a I'm just passing through in a steward of this firm that you know my almost 40 years DATE here whatever whatever I retire that that I will know with you know know that this will this Will be very strong for the next 50 years DATE . Thank you very much. Thank you Eric PERSON . I really really enjoy our time. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Katrina shipping is the key component of
Someone in the private business and there's a few of them that have just done such a good job Overtime. That's been very impressive. Is growing this business important to you and to your fellow partners? Well, you know, we follow 5000 CARDINAL companies Always analyzing how our company's relative to their relative to their competition and their peers. So, we wanna do, we wanna win, right? So, we wanna do well. I'm also a strong believer in you can't aspire to grow just for growth's sake you we have to be super focused on the inputs and if you do really well on the inputs you will grow as a firm the leadership team I think our partnership is very focused on that like if we have the right inputs and that means are we investing in talents Are we investing in new capabilities are we expanding in areas that we think will help our clients then hopefully we will and we can deliver performance we will grow let's talk about the legacy that you're in the process of defining. When you're colleagues and your clients. Yeah. Look back. On the jeans, hinds era. Yeah. The CEO. They'll say you accomplished what We have made our collaborative So we've been able to expand the partnership and that we are delivering most importantly we're delivering great outcomes to And maybe finally it's like to like it's more about like can I do the previous of done and figure out ways to strengthen So that it's We have another 40, 50 years DATE . Set of CEOs can continue that this is a now this is a Passing through in a steward of this firm that, you know, my almost 40 years DATE here, whatever, whatever I retire, that That I will know with you know, know that this will this firm will be very strong for the next 50 years DATE . Thank you very much. Thank you Eric PERSON . I really really enjoy our time. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more important. Continuous shipping is the key component of global trade Transport that see at some point. Era of global commerce. About three% of all the worlds is huge. I'm from shipping. Sent me not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement To help reduce the emissions from these well stocked maritime Myths GPE . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when
That no, my almost 40 years DATE here, whatever, whatever I retire, That I will know with you know, know that this will this firm will be very strong for the next 50 years DATE . Jean PERSON . Thank you very much. Thank you, Eric PERSON . I really, really enjoyed our time. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Contrina GPE shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. Of all the worlds is huge commission 3 may% not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement To help reduce the emissions from these well stocked maritime Bloomberg GPE has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Crypto You have a world of young people. That want their own financial system And their own culture. And it is very powerful. And i'm a big believer in it. Hi I'm Shanali Basic PERSON and you're watching the Nets Big Risk in a year DATE that was marked by Russia GPE 's warn Ukraine GPE soaring inflation around the world and torn supply chains market sea risks everywhere but these Finance ORG are looking further out for the next risks. I think that the promise of the American NORP dream has to be defined It's almost no dispose about a future pandemic and almost no momenta The globalization you're gonna see nation states look internally and make sure that they have the ability To support themselves. Unless public and private investment rises and Americans NORP are protected by the right agencies to ensure economic growth and to defend the labor force. These are the next big risks.
Katrina EVENT shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. I'm from shipping. Certainly not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement To help reduce the emissions from these well stocked maritime Bloomberg GPE has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Crypto You have a world of young people. That want their own financial system. And their own culture. And it is very powerful. And I'm a big believer in it Hi I'm Shanali Basic PERSON and you're watching the Nets Big Risk in a year DATE that was marked by Russia GPE 's warn Ukraine GPE soaring inflation around the world and torn supply chains market sea risks everywhere but these Finance ORG are looking further out for the next risks. I think that the promise of the American NORP dream has to be defined It's almost no dispose about a future pandemic and almost no momenta The globalization you're gonna see nation states look internally and make sure that they have the ability To support themselves. Economic growth and to defend the labor force these are the next big risks There are always issues and for me there are three CARDINAL in particular that I'm focused on intermediate and longer term one has to do with our population More than a century DATE one of the pieces of the secret sauce for the United States GPE growth has been the fact that we've had strong population growth and strong games in labor force and I'm concerned about that right now The second ORDINAL area that I look at has to do with investment for more than 150 years DATE the United States GPE has been one of the global leaders in long term investment both government investment and infrastructure and also corporate investment in private
That isn't quite a sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. I'm from shipping. Output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Crypto You have a world of young people. The one their own financial system And their own culture. And it is very powerful. And i'm a big believer in it. Hi I'm Shanali Basic PERSON and you're watching the Nets Big Risk in a year DATE that was marked by Russia GPE 's Warn Ukraine PERSON soaring inflation around the world and torn supply chains market sea risks everywhere but these three CARDINAL titans of finance are looking Out for the next risks. I think that the promise of the American NORP dream has to be defined. Hey almost notice about a future pandemic and almost no momenta Globalization you're gonna see nation states look internally and make sure that they have the ability Support themselves. Abby Joseph Cohen PERSON who is concerned that future generations in the US GPE will not achieve the same financial stability as their parents unless public and private investment rises and Americans NORP are protected by the right agencies to ensure economic growth and to defend the labor force these are the next big risks There are always issues and for me there are three CARDINAL in particular that I'm focused on intermediate and longer term what has to do with our population More than a century DATE one of the pieces of the secret sauce for the United States GPE growth has been the fact that we've had strong population growth and strong games in labor force and I'm concerned about that right now The second ORDINAL area that I look at has to do with investment. For more than 150 years DATE , the United States GPE has been one of the global leaders in long term investment both.
Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Crypto You have a world of young people. That want their own financial system. And their own culture. And it is very powerful. And I'm a big believer in it. Hi I'm Shanali Basic PERSON and you're watching the Nets Big Risk in a year DATE that was marked by Russia GPE 's warn Ukraine GPE soaring inflation around the world and torn supply chains market sea risks everywhere but these three CARDINAL tightens of finance are looking further Out for the next risks. I think that the promise of the American NORP dream has to be defined. Hey almost know this voice about a future pandemic and almost no momenta The globalization you're gonna see Internally PERSON and make sure that they have the ability To support themselves. With Abby Joseph Cohen PERSON who is concerned that future generations in the US GPE will not achieve the same financial stability as their parents unless public and private investment rises and Americans NORP are protected by the right agencies to ensure economic growth and to defend the labor force. These are the next big risks There are always issues and for me there are three CARDINAL in particular that I'm focused on intermediate and longer term one has to do with our population More than a century DATE one of the pieces of the secret sauce United States GPE growth has been the fact that we've had strong population growth and strong games in labor force and I'm concerned about that right now The second ORDINAL area that I look at has to do with investment. For more than 150 years DATE , the United States GPE has been one of the global leaders in long term investment both government investment and infrastructure and also corporate investment in private capital. And what we're seeing is Will you fall in short over the last decade DATE or two CARDINAL and we need to be looking at that as well and the third ORDINAL piece that I'm increasingly concerned about has to do with the role of government In the economy and let me be very careful in how I express this. I believe in markets. I believe that capitalism has worked well in the United States GPE but not unfettered capitalism. We have benefited from good regulation, Always the best but when we try to protect As a nation We tend to do much better. We look at some areas in which Kind of solid appropriate regulation may now be coming under some risk and I think that would actually damage long-term economic growth of the United States GPE . What about the makeup of the United States GPE is creating a more complicated future for In the country. Reasons the US GPE economy has outperformed the economy of other For the last 30 or 40 years DATE has been that we've had faster way before growth. You know, it's a very simple Equation More GDP ORG . Immigration by the way that's not new this has been a nation of immigrants since it's founding if we're not viewed as welcoming to talent from around the world we'll have a problem going
Add to defend the labor force. These are the next big risks There are always issues and for me there are three CARDINAL in particular that I'm focused on intermediate and longer term what has to do with our population More than a century DATE one of the pieces of the secret sauce for the United States GPE growth has been the fact that we've had strong population growth and strong games in labor force and I'm concerned about that right now The second ORDINAL area that I look at has to do with investment. For more than 150 years DATE , the United States GPE has been one of the global leaders in long term investment both government investment and infrastructure and also corporate investment in private capital. And what we're seeing is that You fallen short over the last decade DATE or two CARDINAL and we need to be looking at that as well And the third ORDINAL piece that I'm increasingly concerned about has to do with the role of government The economy and let me be very careful in how I express this. I believe in markets. I believe that capitalism has worked well in the United States GPE but not unfettered capitalism. We have benefited from good regulation. It's not always the best but when we try Protect As a nation. We tend to do much better. We look at some areas in which Kind of solid appropriate regulation may now be coming under some risk and I think that would actually damage long-term economic growth of the United States GPE . What about The makeup of the United States GPE is creating a more complicated future for labor in the country. Reasons the US GPE economy has outperformed the economy of other For the last 30 or 40 years DATE has been that we've had faster way before growth. You know, it's a very simple More workers, more GDP. Quite that simple but it boils down to that and in the United States GPE , we have been very dependent on immigration. By the way, that's not new. This has been a nation of immigrants since it's founding. If we're not viewed as welcoming to talent from around the world, we'll have a problem going Long term growth. When we look at the information from individual companies and industries, we see that there is a labor shortage at all ends. We all know for example that right now, one of the reasons behind the rise in service inflation has to do with an inadequate number of workers At airports In hotels in restaurants and so on The area that I spend a lot of my time looking at is the other end as well do we have enough new scientist do we have enough new engineers do we have enough new doctors and the answer is no we don't keep in mind you have to also create a pipeline Right the students who are now K through 12 CARDINAL are the future pipeline of scientist and engineers and doctors and we're not doing a very good job with them here right now in terms of their skills this is all kind of boil down to Erosion of the promise of the American NORP dream. I think that the promise of the American NORP dream has to be defined and that is Every generation Better than the previous generation. Do they have the The to do better than their parents did and what we have seen over the last 30 years DATE or so maybe 40 DATE is that median household income in the United States GPE adjusted for inflation has not risen but that is a problem I think it creates a sense of political discord it creates a sense Unease among people in the United States GPE and it is worrisome. Because we have to think about how do we get out of this? Well, one CARDINAL way we get out of it To In on the industry that we think can create jobs that
Has to do with investment for more than 150 years DATE the United States GPE has been one of the global leaders in long term investment both government investment and infrastructure and also corporate investment in private capital and what we're seeing is that we have fallen short over the last Cater PERSON two and we need to be looking at that as well and the third ORDINAL piece that I'm increasingly concerned about has to do with the role of government The economy and let me be very careful in how I express this. I believe in markets. I believe that capitalism has worked well in the United States GPE but not unfettered capitalism. We have benefited from good regulation. It's not always the best but when we try Protect As a nation We tend to do much better. We look at some areas in which Kind of solid appropriate regulation may now be coming under some risk and I think that would actually damage long-term economic growth of the United States GPE . What about the makeup of the United States GPE is creating a more complicated future for In the country. Reasons the US GPE economy has outperformed the economy of other For the last 30 or 40 years DATE has been that we've had faster way before growth. You know, it's a very simple More workers, more GDP. Immigration by the way that's not new this has been a nation of immigrants since it's founding if we're not viewed as welcoming to talent from around the world we'll have a problem going Long term growth. When we look at the information from individual companies and industries, we see that there is a labor shortage at all ends. We all know for example that right now, one of the reasons behind the rise in service inflation has to do with an inadequate number of workers Airports. In hotels, in restaurants, and so on The area that I spend a lot of my time looking at is the other end as well do we have enough new scientist do we have enough new engineers do we have enough new doctors and the answer is no we don't keep in mind you have to also create a pipeline Right? The students who are now K through 12 CARDINAL are the future pipeline of scientist and engineers and doctors and we're not doing a very good job with them right now. In terms of their skills. Does this all kind of boil down to Erosion of the promise of the American NORP dream. I think that the promise of the American NORP dream has to be defined and that is is every generation doing better than the previous generation. Do they have the To do better than their parents did and what we have seen over the last 30 years DATE or so maybe 40 DATE is that median household income in the United States GPE adjusted for inflation has not risen but that is a problem I think it creates a sense of political discord it creates a sense Unease People in the United States GPE , and it is worrisome. Because we have to think about how do we get out of this? Well, one CARDINAL way we get out of it is to In on the industries that we think can create jobs that can create good paying jobs and and to protect our workers in that way the long term problem is staying ahead of the curve making sure that the industries that your supporting are creating jobs and those jobs are paying well enough so Individuals and households feel that they are moving forward. Give me a comment earlier about how investment in American NORP infrastructure was one of the things that you are worried about. Is this the biggest area of investment that you are concerned about Many economists myself included believe that the so called
States has been one of the global leaders in long-term investment both government investment and infrastructure and also corporate investment in private capital And what we're seeing is that we have fallen short over the last decade DATE or two CARDINAL and we need to be looking at that as well and the third ORDINAL piece that I'm increasingly concerned about has to do with the role of government in the economy and let me be very careful in how I express this I believe in markets. I believe that capitalism has worked well in the United States GPE but not unfeathered capitalism. We have benefited from good regulation. Always the best but when we try to protect As a nation. We tend to do much better. We look at some areas in which that kind of solid appropriate regulation may now be coming under some risk and I think that would actually damage long-term economic growth of the United States GPE . What about Is creating a more complicated future for labor in the country. Reasons the US GPE economy has outperformed the economy of other develop nations for the last 30 or 40 years DATE has been that we've had faster labor force growth you know it's a very simple Medic PERSON equation Workers, more GDP. Immigration by the way that's not new. This has been a nation of immigrants since it's founding. If we're not viewed as welcoming to talent from around the world. We'll have a problem going Long term growth. When we look at the information from individual companies and industries, we see that there is a labor shortage at all ends. We all know for example that right now, one of the reasons behind the rise in service inflation has to do with an inadequate number of workers At airports. In hotels, in restaurants, and so on The area that I spend a lot of my time looking at is the other end as well do we have enough new scientist do we have enough new engineers do we have enough new doctors and the answer is no we don't keep in mind you have to also create a pipeline Right? The students who are now K through 12 CARDINAL are the future pipeline of scientist and engineers and doctors and we're not doing a very good job with them here right now. In terms of their skills. Does this all kind of boil down to Erosion of the promise of the American NORP dream. I think that the promise of the American NORP dream has to be defined and that is Every generation doing better than the previous generation. Do they have the To do better than their parents did and what we have seen over the last 30 years DATE or so maybe 40 DATE is that median household income in the United States GPE adjusted for inflation has not risen but that is a problem I think it creates a sense of political discord it creates a sense Unease among people in the United States GPE and it is worrisome. Because we have to think about how do we get out of this? Well, one CARDINAL way we get out of it To In on the industries that we think can create jobs that can create good paying jobs and and to protect our workers in that way the long term problem is staying ahead of the curve making sure that the industries that you're supporting Eating PERSON jobs and those jobs are paying well enough so that individuals and households feel that they are moving forward. Give me a comment earlier about how investment in American NORP infrastructure was one of the things that you are worried about. Is this the biggest area of investment that you are concerned about Many economists myself included believe that the so-called golden era of the 1950 DATE 's 1960 DATE 's economy of the United States GPE
This has been a nation of immigrants since it's founding. If we're not viewed as welcoming to talent from around the world, we'll have a problem going forward in terms of how long term growth. When we look at the information from individual companies and industries, we see that there is a labor shortage We all know for example that right now one of the reasons behind the rise in service inflation has to do with an inadequate number of workers at airports. In hotels in restaurants and so on. The area that I spend a lot of my time looking at is the other end as well do we have enough new scientist do we have enough new engineers do we have enough new doctors and the answer is no we don't keep in mind you have to also create a pipeline Right? The students who are now K through 12 CARDINAL are the future pipeline of scientist and engineers and doctors and we're not doing a very good job within right now in terms of their skills. Does this all kind of boil down to Erosion of the promise of the American NORP dream. I think that the promise of the American NORP dream has to be defined and that is is every generation doing better than the previous generation. Do they have the To do better than their parents did and what we have seen over the last 30 years DATE or so maybe 40 DATE is that median household income in the United States GPE adjusted for inflation has not risen but that is a problem I think it creates a sense of political discord it creates a sense Unease People in the United States GPE , and it is worrisome. Because we have to think about how do we get out of this? One CARDINAL way we get out of it in is to In on the industries that we think can create jobs that can create good paying jobs and and to protect our workers in that way the long-term problem is staying ahead of the curve making sure that the industries that your supporting are creating jobs and those jobs are paying well enough so Individuals and households feel that they are moving forward. Give me a comment earlier about how investment in American NORP infrastructure was one of the things that you are worried about. Is this the biggest area of investment that you are concerned about Many economists, myself included, believe that the so-called golden era of the 1950 DATE 's, 1960 DATE 's, economy of the United States GPE was linked to our willingness to invest heavily in the future and it wasn't just the government, it was also corporations willing to do that. So as a percentage of GDP We were dramatically above every other nation. We were number one in that category for century DATE . We no longer are part of that is because we are under performing our own Commitment to this area but also other nations have figured it out In the 21st century DATE the winning economies the winning strategies for economic growth and therefore enhancing the well being of your people will depend upon whether your investing the reality is we just have not risen peace withinflation and so if you think about the ability for The average American NORP to earn a living How does that kind of play into this longer term concern you have about the next 10 years DATE As good as the last 10 CARDINAL especially when Is we're not going to be able to invest in the way that they used to under a higher interest rate regime. The the strain of economic growth Long-term prosperity. I'm not talking about stock market prosperity. I'm talking about the prosperity of the people in the nation Very much tied to the health of the middle class Obviously to weather the wage in the incoming increases for those families are adequate and that is something that has been a problem now for 40 years DATE in the United States GPE where the median household income hasn't kept up So, this is not a new problem. I think we
How do we get out of this? Well, one CARDINAL way we get out of it To focus in on the industries that we think can create jobs that can create good paying jobs and and to protect our workers in that way the long-term problem is staying ahead of the curve making sure that the industries that your supporting are creating jobs and those jobs are paying Enough so that individuals and households feel that they are moving forward. Give me a common earlier about how investment in American NORP infrastructure was one of the things that you are worried about. Is this the biggest area of investment that you are concerned about Many economists myself included believe that the so-called golden era of the 1950 DATE 's 1960 DATE 's economy of the united states GPE was linked to our willingness to invest heavily in the future and it wasn't just the government it was also corporations willing to do that so as a percentage of GDP We were dramatically above every other nation. We were number one in that category for century DATE . We no longer are part of that is because we are under performing our own Commitment to this area but also other nations have figured it out In the 21st century DATE the winning economies the winning strategies for economic growth and therefore enhancing the well being of your people will depend upon whether your investing the reality is we just have not risen pace withinflation and so if you think about the ability for The average American NORP to earn a living How does that kind of play into this longer term concern you have about the next 10 years DATE As good as the last 10 CARDINAL especially when Under a higher interest rate regime. Growth Long-term prosperity. I'm not talking about stock market prosperity. I'm talking about the prosperity of the people in the nation Very much tied to the health of the middle class Obviously to weather the wage in the incoming increases for those families are adequate and that is something that has been a problem now for 40 years DATE in the United States GPE with immediate household income hasn't kept up So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the curtains and now we see much more clearly where these problems are and where the issues are. I for one, I'm happy to see that wages are now rising. I'm happy to see That workers have more flexibility and how they wanna conduct themselves and so on. I think that's that's a good start. It's not the end. Solution. We need to recognize that a 40 year DATE problem is not gonna be corrected. In 4 months DATE . It's gonna take longer. The balls get replaced where outbreaks don't become pandemics in the first ORDINAL place. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest ambassadors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey portal and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs
The structure was one of the things that you were worried about. Is this the biggest area of investment that you are concerned about? Many economists, myself included, believe that the so-called golden era of the 1950 DATE 's, 1960 DATE 's, economy of the United States GPE was linked to our willingness to invest heavily in the future and it wasn't just Government it was also corporations willing to do that so as a percentage of GDP We were dramatically above every other nation. We were number one in that category for century DATE . We no longer are part of that is because we are under performing our own Commitment to this area but also other nations have figured it out. In the 21st century DATE , the winning economies, the winning strategies for economic growth, and therefore, enhancing the well being of your people will depend upon whether you're investing. The reality is we just have not Peace withinflation and so if you think about the ability for Rich American PERSON to earn a living. How does that kind of play into this longer term concern you have about the next 10 years DATE not being as good as the last 10 CARDINAL especially when Are not going to be able to invest in the way that they used to under a higher interest rate regime. The the strength of economic growth Long-term prosperity. I'm not talking about stock market prosperity. I'm talking about the prosperity of the people in the nation is very much tied to the health of the middle class Obviously to weather the wage in the incoming increases for those families are adequate and that is something that has been a problem now for 40 years DATE in the United States GPE where the median household income hasn't kept up So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the curtains and now we see much more clearly where these problems are and where the issues are. I, for one, I'm happy to see that wages are now rising. I'm happy to That workers have more flexibility and how they wanna conduct themselves and so on. I think that's that's a good start. It's not the end solution. We need to recognize that a 40 year DATE problem is not gonna be corrected. In 4 months DATE . It's Take longer. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the Revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. For something as universally important to human life Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding It's easy to memorize that makes you smart if it can Act a lot of facts but if you wanna be wise, you really want wisdom.
We're concerned about many economists, myself included, believe that the so-called golden era of the 1950 DATE 's, 1960 DATE 's, economy of the United States GPE was linked to our willingness to invest heavily in the future and it wasn't just the government, it was also corporations willing to do that. So as GDP We were dramatically above every other nation. We were number one in that category for century DATE . We no longer are part of that is because we are under performing our own Commitment to this area but also other nations have figured it out. In the 21st century DATE , the winning economies, the winning strategies for economic growth, and therefore, enhancing the well being of your people will depend upon whether you're investing. The reality is we just have not Pairs with inflation and so if you think about the ability for the average American NORP to earn a living How does that kind of play into this longer term concern you have about the next 10 years DATE As good as the last 10 CARDINAL especially when Are not going to be able to invest in the way that they used to under a higher interest rate regime. The the strength of economic growth Long-term prosperity. I'm not talking about stock market prosperity. I'm talking about the prosperity of the people in the nation Very much tied to the health of the middle class Obviously to weather the wage in the incoming increases for those families are adequate and that is something that has been a problem now for 40 years DATE in the United States GPE where the median household income hasn't kept up So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the curtains and now we see much more clearly where these problems are and where the issues are. I for one, I'm happy to see that wages are now rising. I'm happy to That workers have more flexibility and how they wanna conduct themselves and so on. I think that's that's a good start. It's not the end. Solution. We need to recognize that a 40 year DATE problem is not gonna be corrected. In 4 months DATE . It' It takes longer. And the first ORDINAL place. Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best and best as you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest ambassadors in the world Would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey Important PRODUCT . I think we've moved from this attitude from it's an indulgence, a waste of time, almost an illness that needs a cure. For something as universally important to human life Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understand It's easy to memorize that makes you smart. It can spit back a lot of facts. But if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And
It has been a problem now for 40 years DATE in the United States GPE where the median household income hasn't kept up So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the curtains and now we see much more clearly where these problems are and where the issues are. I for one and happy to see that wages are now rising. I'm happy to see That workers have more flexibility and how they wanna conduct themselves and so on. I think that's that's a good start. It's not the end. Solution. We need to recognize that a 40 year DATE problem is not gonna be corrected. In 4 months DATE . It's Take longer. The bulls get to a place where outrage don't become pandemics in the first ORDINAL place. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest ambassadors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure for As universally important to human life as sleep mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding It's easy to memorize that makes you smart if you can When and how and why to use that information And that's what your brain figures out while you're sleeping. When you look over the next 5 to 10 years DATE over a little bit of a longer time horizon and you think about what's happening in the economy and markets in society more largely Keeps PRODUCT you up at night TIME . One CARDINAL thing that has, you know, I seem particularly important to me is how we handle future pandemic. I, you know, we we shared with COVID that we were not ready. For global pandemic and I think we are still not ready for the next one. The really worrying cases, is that we have a repeat of what happened with COVID, where we are not prepared at all beforehand, but spreading too much of the world, but with a way higher fatality rate and ends up A lot of people the economy grinds to a halt amid they they chaos and and lockdowns you know is there a more extreme version of what we saw during COVID is part of your worry here that the next pandemic would be worse than what we saw in COVID and at worry that underpins that the systems we have are not prepared for it. I think it was pretty clear to see in ret Fact that we were not ready for COVID there was no coordination in terms of what responses should be to it instead we saw sort of like completely discordated action if you look at where we are today DATE we have not started putting any of those processes in place that we should have had If you know we got a mocky and there was a future pandemic Devastation. Problem is that there weren't that many lessons that it seems like we really learned as a society that we are in much the same place we
Hey Facebook crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs cure. For something as universally important to human life Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understand It's easy to memorize that makes you smart if you can spit it back a lot of facts but if you wanna be wise you really want wisdom you gotta know when and how and why to use that information And that's what your brain figures out while you're sleeping. When you look over the next 5 to 10 years DATE over a little bit of a longer time horizon and you think about what's happening in the economy and markets in society more largely Keeps PRODUCT you up at night TIME . I think particularly important to me is how we handle future pandemic. You know we we shared with COVID that we were not ready. For a global pandemic and I think we are still not ready for the next one. The really worrying cases is that we have a repeat of what happened with COVID We are not prepared at all beforehand. And lockdowns Worry that underpins that the systems we have are not prepared for it. Clear to see in retrospect that we were not ready for COVID there was no coordination in terms of what responses should be to it instead we saw sort of like completely discordated action if you look at where we are today DATE we have not started putting any of those processes in place that we should have had last time if you know we got a And there was a future pandemic that was substantially more fatal you could imagine the same thing playing out but with a lot more devastation Warrant that many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand there's almost no discourse about a future pandemic and almost no momenta we don't seem to learn really the core lesson Which was that we were not prepared and that we need to be better prepared. Do you think this is going to put on an economic system in the future? I think that you played out pretty poorly this time when all of a sudden done and I think at the very least you could see a repeat of that where not only did we have massive supply kit problems that were now seeing in retrospect we had massive monitoring supply increased try mask over some of Problems ORG . Would have been it probably a devastating economic hit otherwise as COVID winds down and are I economic I I monetary countermeasures wind down it becomes clear we never really averted economic it pass From COVID. It had massive negative impact. You can look at runaway inflation. You can look at rising interest rates. I slumping economy, slumping markets, and and and that was without, you know, nearly just as they're putting That does much more damage and we might not be able to get back to work as a society nearly as quickly or as functionally About in terms of inequality obviously different Were impacted differently both within the US GPE and across the world. So, do you worry about the compounding effect when it comes to, you know, the social strata? Because of the global nature of pandemics. If there is an outbreak in one CARDINAL country that is going to affect every country. And and and so not only do you see disproportionate dust in less while off countries but that also makes it really hard for the world to stop this spread of pandemics and that means that if there are Counter ORG measures they will be
It's easy to memorize that makes you smart if you can Act a lot of facts. But if you wanna be wise, you really want wisdom, you gotta know when and how and why to use that information. And that's what you bring figures out while you're sleeping. When you look over the next 5 to 10 years DATE over a little bit of a longer time horizon and you think about what's happening in the economy and markets in society more largely Keeps PRODUCT you up at night TIME . One CARDINAL thing that has, you know, I seem particularly important to me is how we handle future pandemic. You know we we shared with COVID that we were not ready. For global pandemic and I think we are still not ready for the next one. The really worrying cases is that we have a repeat of what happened with COVID where we are not prepared at all beforehand. The world. Hey hey markdowns you know is there a more extreme version of what we saw during COVID is part of your worry here that the next pandemic would be worse than what we saw in COVID and at worry that underpins that the systems we have are not prepared for it. Here to see in retrospect that we were not ready for COVID there was no coordination in terms of what responses should be to it and said we saw sort of like completely discordated action if you look at where we are today DATE we have not started putting any of those processes in place that we should have had Last time if you know we got a lucky and there was a future pandemic Was substantially more fatal. You could imagine the same thing playing out but with a lot more devastation Many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand there's almost no discourse about a future pandemic and almost no momenta we don't seem to learn really the core lesson of COVID which was that we were not prepared We need to be better prepared. What kind of strains do you think this is going to put on an economic system in the future? I think that you played out pretty poorly this time when all was said and done and I think at the very least you could see a repeat of that where not only did we have massive supply chain problems that were now seeing in retrospect we had massive monetary supply increase Try mask over Problems ORG . I ate monetary countermeasures, wind down, it becomes clear. We never really averted economic impact from It's had massive negative impact. You can look at runway inflation. You can look at rising interest rates. A slumping economy, slumping markets, and and and that was without, you know, nearly just as they're put it in right here, did you want that, that does much more We might not be able to get back to what this society nearly as quickly or as functionally About in terms of inequality obviously different Were impacted differently both within the US GPE and across the world. So, do you worry about the compounding effect when it comes to, you know, the social strata? Because of the global nature of pandemics If there is an outbreak in one CARDINAL country, that is going to affect every country. And and and so not only do you see disproportionate dust in less while off countries but that also makes it really hard for the world to stop this spread of pandemics and that means that if there are Trillions of dollars MONEY as a world. Trying to With the fallout. From COVID that is a really huge expense and we're still not done with it. It's a little bit sobering to see the scale of impact of that new combined with the game with just like not even solving the problem. And that's with the workforce that is able to mostly go back to work in person. If you have a
But if you wanna be wise When and how and why to use that information. And that's what your brain figures out while you're sleeping. When you look over the next 5 to 10 years DATE over a little bit of a longer time horizon and you think about what's happening in the economy and markets in society more largely Keeps PRODUCT you up at night TIME . You know I it's in particularly important to me is how we handle future pandemic. You know we we shared with COVID that we were not ready. For a global pandemic and I think we are still not ready for the next one. The really worrying cases is that we have a repeat of what happened with COVID where we are not prepared at all beforehand. That's up spreading too much of the world. But with a way higher fatality rate. And ends up The economy grinds to a halt Is part of your worry here that the next pandemic would be worse than what we saw in COVID and at worry that underpins that the systems we have are not prepared for it. Clear to see in retrospect that we were not ready for COVID there was no coordination in terms of what responses should be to it and said we saw sort of like completely discordated action if you look at where we are today DATE we have not started putting any of those processes in place that we should have had last time if you know we got a And there was a future pandemic Devastation Problem ORG is that there weren't that many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand. There's almost no discourse about a future pandemic and almost no momenta. We don't seem to learn really the core lesson. Of COVID which was that we were not prepared. And that we need to be better prepared. What kind of strains do you think this is going to put on an economic system in the future? I think that you played out pretty poorly this time when all of a sudden done and I think at the very least you could see a repeat of that where not only did we have massive supply chain problems that were now seeing in retro We had massive monetary supply increased try mask over some of the problems trying mask over what would have been it probably a devastating economic hit other Hey Winds down and are I economic I I monetary countermeasures wind down it becomes clear we never really averted economic impact from It's had massive negative impact. You can look at runaway inflation. You can look at rising interest rates. I slumping economy, slumping markets, and and and that was without, you know, nearly just as they're put it in right That does much more damage and we might not be able to get back to work as a society nearly as quickly or as functionally. About in terms of inequality obviously different societies were impacted differently both within the US GPE and across the world so do you worry about the compounding effect when it comes to you know the social strata If there is an outbreak in one CARDINAL country that is going to affect every country. And and and still not only do you see disproportionate dust in less while off countries but that also makes it really hard for the world to stop this spread of pandemics and that means that if there are Just spread it and grow when all is said and done you know we will have spent Ends of trillions of dollars MONEY as a world. Trying to contend with the fallout. From COVID, that is a really huge expense. And we're still not done with it. It's a little bit sobering to see the scale of impact of that new combined with the game with just like Not even solving the problem and that's with the workforce that is able to mostly go back to work in person if you have a more deadly strain there's gonna be a lot more worry about
A lot more devastation. The biggest problem is that there weren't that many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand. There's almost no discourse about a future pandemic and almost no momenta. We don't seem to learn really the core lesson. COVID which was that we were not prepared and that we need to be better prepared. Do you think this is going to put on an economic system in the future? I think that you played out pretty poorly this time when all of a sudden done and I think at the very least you could see a repeat of that where not only did we have massive supply chain problems that were now seeing in retrospect we had massive monetary supply increased try mask over some of Problems ORG . Would have been it probably a devastating economic hit otherwise as COVID winds down and are I economic I I monetary counter measures wind down it becomes clear we never really averted economic impact From COVID. It had massive negative impact. You can look at runaway inflation. You can look at rising interest rates. I slumping economy, slumping markets, and and and that was without, you know, nearly just as they're putting Eat your one that does much more damage and we might not be able to get back to work as a society nearly as quickly or as functionally About in terms of inequality obviously different Were impacted differently both within the US GPE and across the world so do you worry about the compounding effect when it comes to you know the social strata? Because of the global nature of pandemics. If there is an outbreak in one CARDINAL country that is going to affect every country And and and so not only juicy disproportionate dust in less while off countries but that also makes it really hard for the world to stop this spread of pandemics and that means that if there are Or Just read it and grow. When all is said and done, you know, we will have spent Hens of trillions of dollars MONEY as a world. Trying to contend with the fallout. From COVID, that is a really huge expense. And we're still not done with it. It's a little bit sobering to see the scale of impact of that new combined with the game with just like Not even solving the problem. And that's with the workforce that is able to mostly go back to work in person. If you have a more deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted for activity declines that Tailspin PERSON with the tens of trillions of dollars incinerated in the first ORDINAL place. The strain on political systems. You saw kind of the masking issue and the lockdowns becoming a really big contention point politically in many governments across the US GPE and the world. How do you expect that to create a further strain on the system political Hey portal And on many countries. We'd want to do is dip this in the bud so that you stop you know a pandemic from getting out of control in the first ORDINAL place Cut it off way closer to the source That means instead of arguing about masks you know we should have been focusing on how can we get in place I you know good ventilation in the indoor buildings so that there is massively less spread of pandemics through them Would have been a much much healthier You know focus prices as society. This into your own work. I know you've been rising more and more both as a philanthropist and as a political donor. How are you thinking about this risk in terms of how you work ahead? This isn't a one CARDINAL party against another I in the way that some debates over some specific Techniques ORG ended up being I have been spending a fair bit of effort and and and time and in capital on trying to advance you know pandemic prevention I I you know legislation and and policy a lot of the discourse around
You know we will have spent Hens of trillions of dollars MONEY as a world. Trying to contend with the fallout. From COVID, that is a really huge expense. And we're still not done with it. It's a little bit sobering to see the scale of impact of that new combined with the game with just like Not even solving the problem and that's with the workforce that is able to mostly go back to work in person if you have a more deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted productivity declines that Incinerated in the first ORDINAL place. The strain on political systems. You saw kind of the masking issue and the lockdowns becoming a really big contention point politically in many governments across the US GPE and the world. How do you expect that to create a further strain on the system politically? And on many countries Really want to do is nip this in the bud so that you stop you know a pandemic from getting out of control in the first ORDINAL place Cut it off way closer to the source that means instead of arguing about masks you know we should have been focusing on how can we get in place You know good ventilation in indoor buildings So that there is massively less spread of pandemics through them that would have been a much much healthier You know focus prices as a society is there a bipartisan solution and are there ways that you personally are kind of incorporating this into your own work I know you've been rising more and more both as a philanthropist and as a political donor how are you thinking about this risk in terms of how you work ahead this isn't a one CARDINAL party against another I in the way that some debates over some specific Techniques ORG ended up being I have been spending a fair bit of effort and and and time and in capital on trying to advance you know pandemic prevention I I you know legislation and and policy a lot of the discourse around you know COVID and pandemics in general has you know as you serve you know reference Focused on things like masks by the time that's the debate we've already failed at the much more important goal which is avoiding ending up there in the first ORDINAL place by having countermeasures ready beforehand by having early detection systems by Good ventilation in buildings the goals to get to a place where outbreaks don't become pandemics in the first ORDINAL place and where we don't have to shut down you know the economy where people don't have to die where we don't have to make trade offs and hopefully we can you know I think spend you know tens of billions of dollars MONEY Today DATE to save tens of trillions of dollars MONEY later on. There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy. Need to catch up. Week on David Weston PERSON . This is a level of uncertainty that we haven't had to deal with. A lot of the satellites have propulsion systems they can kinda move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If you're Lights gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem now.
You combine with the game which is like not even solving the problem and that's with the workforce that is able to mostly go back to work in person if you have a more deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted productivity Declines ORG that sort of tail spin with the tens of trillions of dollars incinerated in the first ORDINAL place. The strain on political systems. You saw kind of the masking issue and the lockdowns becoming a really big contention point politically in many governments across the US GPE and the world. How do you expect that to create a further strain on the system politically? Hey and On on you know the USA GPE you said it and on many countries So that you stop you know pandemic from getting out of control in the first ORDINAL place Cut it off way closer to the source that means instead of arguing about masks you know we should have been focusing on how can we get in place You know good ventilation in indoor buildings So that there is massively less spread of pandemics through them that would have been a much much healthier You know focus prices a society is there a bipartisan solution and are there ways that you personally are kind of incorporating this into your own work I know you've been rising more and more both as a philanthropist and as a political donor how are you thinking about this risk in terms of how you work ahead this isn't a one CARDINAL party against another I in the way that some debates over some specific Trying to advance you know pandemic prevention I I you know legislation and and policy a lot of the discourse around you know COVID and pandemics in general has you know as you serve you know reference Focused on things like masks by the time that's the debate we've already failed at the much more important goal which is avoiding ending up there in the first ORDINAL place by having countermeasures ready beforehand by having early detection systems by Good ventilation in buildings the goals to get to a place where outbreaks don't become pandemics in the first ORDINAL place and where we don't have to shut down you know the economy where people don't have to die where we don't have to make trade offs and hopefully we can you know I think spend you know tens of billions of dollars MONEY Today DATE to save tens of trillions of dollars MONEY later on. There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy. Need to catch up. We've got the information and insights. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. A lot of the satellites have propulsion systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver their machines yeah we offer a collision avoidance survey it's a subscription service we'll send you an alert up to 7 days DATE in advance if you're It's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem now. The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloud a debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up So Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you?
With the workforce that is able to mostly go back to work in person if you have a more deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted productivity declines that sort of talespin with the tens of trillions of dollars Incinerated in the first ORDINAL place. Political systems. Becoming a really big contention point politically in many governments across the US GPE and the world. How do you expect that to create a further strain on the system politically? I'm I'm Countries. What to do is dip this in the bud so that you stop you know a pandemic from getting out of control in the first ORDINAL place. You know cut it off way closer to the source Instead of arguing about masks you know we should have been focusing on how can we get in place You know good ventilation in indoor buildings So that there is massively less spread of pandemics through them that would have been a much much healthier You know focus prices of society. This into your own work. I know you've been rising more and more both as a philanthropist and as a political donor. How are you thinking about this risk in terms of how you work ahead? This isn't a one CARDINAL party against another Everything I in the way that some debates over some specific Trying to advance you know pandemic prevention I I you know legislation and in policy a lot of the discourse around you know COVID and pandemics in general has you know as you serve you know reference Focused on things like masks by the time that's the debate we've already failed at the much more important goal which is avoiding ending up there in the first ORDINAL place by having countermeasures ready beforehand by having early detective systems by Good ventilation in buildings the goals to get to a place where outrage don't become pandemics in the first ORDINAL place and where we don't have to shut down you know the economy where people don't have to die where we don't have to make trade offs and hopefully we can you know I think spend you know tens of billions of dollars MONEY today DATE to save tens of CARDINAL one 1 trillion Later on. There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy. Need to catch up. Week I'm David Weston PERSON . From business's most influential and instrumental. This is a level of uncertainty that we haven't had to deal with. Television and radio A lot of the satellites have propulsion systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offer to help these companies know how to maneuver their machines Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If your satellite's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. So much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up So Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? Front of us right now is is I think deglobalization you're gonna see
Trying to advance you know, pandemic prevention. I you know, legislation and and policy a lot of the discourse around, you know, COVID in pandemics in general has, you know, as you serve, you know, reference, focused on things like masks by the time that's the debate. We've already failed. Ready beforehand by having early detective systems by having good ventilation in buildings the goals to get to a place where outreach don't become pandemics and the first ORDINAL place and where we don't Where we don't have to make trade offs and hopefully we can you know I think spend you know tens of billions of dollars MONEY today DATE to save tens of trillions of dollars MONEY later on There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy. Need to catch up. Week on David Weston PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. A lot of the satellites have propulsion systems. They can kinda move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If Satellite PERSON 's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a clouded debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up So, Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? One CARDINAL of us right now is is I think DeGlobalization ORG you're gonna see Nation states look internally and make sure that they have the ability Support themselves. How much of this is a function of the war in Ukraine GPE and how much of this deglogalization phenomenon started before that? Well, I think it did start before it. All you have to do is look at Brexit PERSON . I mean, the idea for Brexit PERSON started, I think it's now 7 or 8 years ago DATE It didn't happen until 2020 DATE but that's the beginning Think where you see in the war finale is let's just take an An exemplary Figuring this Germany GPE So Germany GPE strategy up to this point was to outsource their To the United States GPE to outsource their financial management to the EU ORG . They outsource their energy supply to Russia GPE And they also they're in market to China GPE . This was the complete globalization of an economy and you can see at this point, I think they're in extreme trouble. So, if you think that deglobalization is the next big risk, what's at stake from countries detaching themselves from each other? What really is the problem with For a few decades DATE we were able to outsource to the cheapest labor markets we were able to rely on each other for goods that that really throughout history and I I do think part of this is going back and reading history most countries would not outsource items that were very important to their well being food being one And I think energy being one that's showing up is to be extremely important What's gonna happen now is I think each society is gonna have to think about did I did i outsource something that That I'm not comfortable with. How is this even possible to fully become the globalized when so many.
Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. The risk of a collision is a lot higher now. Cuz we've installed so much more hardware in the space. Are you have a big collision it creates a clouded debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up So, Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? One CARDINAL of us right now is is I think DeGlobalization ORG you're gonna see Nation states look internally and make sure that they have the ability Support themselves. How much of this is a function of the war in Ukraine GPE and how much of this deglogalization phenomenon started before that? Well, I think it did start before. All you have to do is look at Brexit PERSON . I mean, the idea for Brexit PERSON started, I think it's now 7 or 8 years ago DATE It didn't happen until 2020 DATE but that's the beginning Think what you see in the war finale is let's just take an An exampleary Figure in this Germany GPE So Germany GPE strategy up to this point was the outsourced their To the United States GPE to outsource their financial management to the EU ORG . They outsource their energy supply to Russia GPE And they also they're in market to China GPE . This was the complete globalization of an economy and you can see at this point, I think they're in extreme trouble. Is the next big risk. What's at stake from countries detaching themselves from each other? What really is the problem with that For a few decades DATE , we were able to outsource to the cheapest labor markets. We were able to rely on each other for goods that that really throughout history and I I do think part of this is going back and reading history. Most countries would not outsource items that were Important to their well being food being one of them and I think energy being one that's showing up is to be extremely important What's gonna happen now is I think each society is gonna have to think about did I did I outsource something that That I'm not comfortable with. How is this even possible to fully become the globalized when so many nations rely on others? It's not that every nation is rich with oil or rich with nickel. With food resources events. For those of us in the United States GPE , we have a spectacular Country filled with the resources. We need Germany GPE has gotten itself in a position where it does not have energy supplies. It turned off its nuclear. It's right at the center and near the war and and the ramifications. We're seeing the elements of deglobalization and it's cost. To ordinary people elaborate on that you should cause to ordinary people what are the cost how else are you seeing a play out throughout history food is always been a key and if you look at what's happening In the Russia GPE Ukraine GPE war I think there's more going on there in terms of supply, supply, supply chains, Horrified by the war and the invasion but i think the The motivations and the and the rational and what's happening behind it are gonna highlight to people can I provide the basics each country will move to protect their own citizens and as a result they might deglobilize ahead of you there are populations all over the world that we're not aware of but they wanna eat and they Be heated in the winter and by the way they want access to cheap electricity And all these things are going through the roof until the extent We're feeling the political pain in the US GPE and I I believe we'll solve this problem. It it might take a couple of years DATE but it'll work its way out. Not everybody has that choice. Much of the rest of the world has depended on flows of of those Food goods. I mean, we're talking about Part of Africa LOC that is totally reliant on the Ukrainian NORP weed fields and Russia GPE was a gigantic exporter of wheat this is the basic food ingredients that keeps people from
So Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? Front of us right now is is I think de globalization you're gonna see in a nation states look internally and make sure that they have the ability To support themselves. How much of this is a function of the war in Ukraine GPE and how much of this deglogalization phenomenon started before that? Well, I think it did start before it. All you have to do is look at I mean the idea for Brexit PERSON started I think it's now 7 or 8 years ago DATE it didn' Happened til 2020 but that's the beginning Think what you see in the war finale is let's just take an An exemplary Figure in this Germany GPE So Germany GPE strategy up to this point was to outsource their To the United States GPE to outsource their financial management to the EU ORG they outsource their energy supply to Russia GPE And they also they're in market This was the complete globalization of an economy and you can see at this point I think they're in extreme trouble. Is the next big risk. What's at stake from countries detaching themselves from each other? What really is the problem with that For a few decades DATE , we were able to outsource to the cheapest labor markets. We were able to rely on each other for goods that that really throughout history and I do think part of this is going back and reading history. Most countries would not outsource items that were very important to their well being, food, being one of them And I think energy being one that's showing up is to be extremely important what's gonna happen now is I think each society is gonna have to think about did I did I outsource something that That I'm not comfortable with. How is this even possible to fully become the globalized when so many nations are rely on others? It's not that every nation is rich with oil or rich with nickel or rich with food resources events. For those of us in the United States GPE , we have a spectacular Country filled with the resources. We need Germany GPE has gotten itself in a position where it does not have energy supplies. It turned off it's nuclear. It's right at the center and near the war and and the ramifications. We're seeing the elements of deglobilization and it's cost. To ordinary people. What are the costs? How else are you seeing a play out? Throughout history, food is always been a key and if you look at what's happening In the Russia GPE Ukraine GPE war I think there's more going on there in terms of supply, supply, supply chains, Horrified by the war and the invasion but i think the The motivations and the and the rational and what's happening behind it are gonna highlight to people can I provide the basics each country will move to protect their own citizens and as a result they might deglobilize ahead of you there are populations all over the world that we're not aware of but they wanna eat and they Be heated in the winter and by the way they wanna access the cheap electricity And all these things are going through the roof and to the extent We're feeling the political pain in the US GPE and I I believe we'll solve this problem. It it might take a couple of years DATE but it'll work its way out. Not everybody has that choice. Much of the rest of the world has depended on flows of of those Food cuz I mean we're talking about part of Africa LOC that is totally reliant on the Ukrainian NORP weed fields and Russia GPE was a gigantic exporter of wheat this is the basic food ingredients that keeps people from From from having insurrection we saw it again in Sri Lanka GPE over the weekend DATE you're nine CARDINAL meals away from having a very unhappy citizenship that's willing to to take extraordinary action To get their family safe. There are, you know, seven 1 billion people in the world. I'd say a one 1 billion CARDINAL of them, let's say roughly or in Western Europe LOC and the US GPE . And we've set in course a policies Very much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that's
So, Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? Front of us right now is is I think de globalization you're gonna see in a nation states look internally and make sure that they have the ability To support themselves. How much of this is a function of the war in Ukraine GPE and how much of this deglogalization phenomenon started before that? Well, I think it did start before. All you have to do is look at I mean the idea for Brexit PERSON started I think it's now 7 or 8 years ago DATE It didn't happen until 2020 DATE but that's the beginning Think what you see in the war finale is let's just take an An exemplary Figure in this Germany GPE So Germany GPE strategy up to this point was to outsource their To the United States GPE to outsource their financial management to the EU ORG . They outsource their energy supply to Russia GPE And the answer is they're in market to China GPE This was the complete globalization of an economy and you can see at this point I think they're in extreme trouble. Is the next big risk. What's at stake from countries detaching themselves from each other? What really is the problem with that happening For a few decades DATE , we were able to outsource to the cheapest labor markets. We were able to rely on each other for goods that that really throughout history and I I do think part of this is going back and reading history. Most countries would not outsource items that were very important to their well being, food, being one of them And I think energy being one that's showing up is to be extremely important What's gonna happen now is I think each society is gonna have to think about Hey did I outsource something that I'm not comfortable with. How is this even possible to fully become deglobalized when so many nations rely on others? It's not that every nation is rich with oil or rich with nickel or rich with food resources events. For those of us in the United States GPE , we have a spectacular Country filled with the resources. We need Germany GPE has gotten itself in a position where it does not have energy supplies. It turned off it's nuclear. It's right at the center and near the war and and the ramifications. We're seeing the elements of deglobalization and it's cost. To ordinary people. Elaborate on that. You should cost to ordinary people. What are the costs? How else are you seeing a play out? Throughout history, food has always been a key and if you look at what's happening In the Russia GPE Ukraine GPE war I think there's more going on there in terms of supply, supply chains, Horrified by the war and the invasion but i think the The motivations and the and the rational and what's happening behind it are gonna highlight to people. Can I provide the basics? Each country will move to protect their own citizens. And as a result, they might deglobilize ahead of you. There are populations all over the world that we're not aware of but they wanna eat and they Be heated in the winter and by the way, they want access to cheap electricity. And all these things are going through the roof and to the extent We're feeling the political pain in the US GPE and I I believe we'll solve this problem. It it might take a couple of years DATE but it'll work its way out. Not everybody has that choice. Much of the rest of the world has depended on flows of of those Food goods. I mean, we're talking about part of Africa LOC that is totally reliant on the Ukrainian NORP Weedfields and Russia GPE was a gigantic exporter of wheat. This is the basic food ingredients that keeps people from From from having insurrection we saw it again in Sri Lanka GPE over the weekend DATE you're nine CARDINAL meals away from having a very unhappy citizenship that's willing to to take extraordinary action To get their family safe. There are, you know, seven 1 billion people in the world. I'd say a one 1 billion CARDINAL of them, let's say roughly or in Western Europe LOC and the US GPE . And we've set in course policies Very much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that six 1 billion QUANTITY people Two 1 billion MONEY it subsharing Africa LOC .
Think about did I did I outsource something that That I'm not comfortable with. How was this even possible to fully become the globalized when so many nations rely on others? It's not that every nation is rich with oil or rich with nickel. With food resources events. For those of us in the United States GPE , we have a spectacular Country filled with the resources. We need Germany GPE has gotten itself in a position where it does not have energy supplies. It turned off its nuclear. It's right at the center and near the war and and the ramifications were seeing the elements of deglobalization and it's cost. To ordinary people. What are the costs? How else are you seeing a playout? Throughout history, food is always been a key and if you look at what's happening In the Russia GPE Ukraine GPE war I think there's more going on there in terms of supply, supply chains, Horrified by the war and the invasion but i think the The motivations and the and the rational and what's happening behind it are gonna highlight to people. Can I provide the basics? Each country will move to protect their own citizens. And as a result, they might deglobilize ahead of you. There are populations all over the world that we're not aware of but they wanna eat. And they Be heated in the winter and by the way, they want access to cheap electricity. And all these things are going through the roof and to the extent We're feeling the political pain in the US GPE and I I believe we'll solve this problem. It it might take a couple of years DATE but it'll work its way out. Not everybody has that choice. Much of the rest of the world has depended on flows of of those Food cuz I mean we're talking about part of Africa LOC that is totally reliant on the Ukrainian NORP weed fields and Russia GPE was a gigantic exporter of wheat this is the basic food ingredients that keeps people from Rioting from from having insurrection. We saw it again in Sri Lanka GPE over the weekend DATE . You're nine CARDINAL meals away from having a very unhappy citizenship that's willing to to take extraordinary action to get their family safe. There are, you know, seven 1 billion people in the world. I'd say a one 1 billion CARDINAL of them. Let's say roughly or in Western Europe LOC and the And we've set in course policies Very much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that six 1 billion QUANTITY people Two 1 billion MONEY it subsaver in Africa LOC During Asia LOC are still trying to reach middle class We raise their energy costs dramatically I don't think they're gonna be you know they're not gonna be happy about that and I I think the Arab Spring DATE fundamentally started over food prices and their basic instinct and need is to feed heat cloth and take care of their family. So what are the forces that are reversing decades DATE of globalization? Well Might be just the safety of the supply chains and possibly the actions by Russia GPE are a highlight to that but again go back to Brexit PERSON decision By the UK GPE people Vote to take back some of there also they had outsourced their labor forced to central Europe LOC and they had started to make a decision to pull it back for whatever reasons they didn't like outsourcing again outsourcing your financial management To the EU ORG and the ECB ORG . You mentioned the outsourcing of financial assets. On one CARDINAL hand I'm wondering what impact do the sanctions have. Some of our policy moves here are gonna have very long term ramifications. In this environment, we've frozen the bank reserves of Russian NORP bank And if you don't think that every single Maybe not every single but there's substantial number Finance ORG ministers around the world have to rethink Where are there as had secure I've had many people ask me What do I do if my assets in China GPE ? What do I do with my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar
Ukrainians NORP and Russia GPE was a gigantic exporter of wheat this is the basic food ingredients that keeps people from From from having insurrection we saw it again in Sri Lanka GPE over the weekend DATE you're nine CARDINAL meals away from having a very unhappy citizenship that's willing to to take extraordinary action To get their family safe. There are, you know, seven 1 billion people in the world. I'd say a one 1 billion CARDINAL of them, let's say roughly or in Western Europe LOC and the US GPE . And we've set in course policies Very much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that six 1 billion QUANTITY people Two 1 billion MONEY it subsharing Africa Asia LOC are still trying to reach middle class and if we raise their energy costs dramatically I don't think they're gonna be you know they're not gonna be happy about that and I I think the Arab Spring DATE fundamentally started over food prices and their basic instinct to need is to feed heat cloth and take care of their family. So what are the forces that are reversing decades DATE of Globalization ORG . Well, it might be just the safety of the supply chains and possibly the actions by Russia GPE are a highlight to that but again, go back to Brexit PERSON decision By the UK GPE people In a vote to take back some of there also they had outsourced their labor force to Outsourcing again outsourcing your financial management To the EU ORG and the ECB you mentioned the outsourcing of financial assets on one CARDINAL hand I'm wondering what impact do the sanctions have some of our policy moves here are gonna have very long term ramifications in this environment we've frozen the bank reserves of Russian NORP bank re And if you don't think that every single Maybe not every single but there's substantial number Of finance ministers around the world have to rethink Are there as had secure I've had many people ask me What do I do if my assets in China GPE ? What do I do with my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar disagreement or conflict are those assets subject to immediate abandonment these are questions everybody's gonna ask whether they talk about them a lot or not they're gonna be asked I'm not saying we'll go to 100% PERCENT investment in your own country but boy the risk Premium GPE has significantly gone up. I mean, is this just a giant politicalization of assets around the world? As you see it, given that now, governments are getting involved in a much more Way in terms of the resources that they own oversee and trade. Companies with how to abandon assets immediately because of a political because of a conflict. So now you have to anticipate where in the world might we not like the activities of a future You can come up with a long list of where you might be uncomfortable and you have to truly change your your wrist profile there so we're in the middle of seeing a very effective use. Weaponization of resources. Now, not everybody can weaponize the resources because they don't have They don't have enough resources. So, to the extent that this is the biggest risk you see on the horizon over the the medium to long term. What about it really keeps you up at night TIME ? There's a possibility I think this leads to revolution in populations that do not have control over there food and energy and in a world that we live in, like it or The the change in the world toward cheap energy Asian NORP cars oil and gas is used for clothing. It's used for significant amount of products. And again, food is food and I get concerned as to what can happen in these these If if oil and gas does get to be $ 200 MONEY a barrel And if The supply the actual food supply gets disintermediated I think you could have ramification
Pretty much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that six 1 billion QUANTITY people To one 1 billion MONEY it subsharing Africa LOC During Asia LOC are still trying to reach middle class We raise their energy costs dramatically I don't think they're gonna be you know they're not gonna be happy about that and I I think the Arab Spring DATE fundamentally started over food prices and their basic instinct and need is to feed heat cloth and take care of their family. The forces that are reversing decades DATE of Globalization ORG . Well, it might be just the safety of these supply chains and possibly the actions by Russia GPE are a highlight to that but again, go back to Brexit PERSON a decision By the UK GPE people To take back some of there also they had outsourced their labor force to A central Europe LOC and they had started to make a decision to pull it back for whatever reasons they didn't like outsourcing again outsourcing your financial management To the EU ORG and the ECB ORG . You mentioned the outsourcing of financial assets. On one CARDINAL hand I'm wondering what impact do the sanctions have. Some of our policy moves here are gonna have very long term ramifications in this environment. We've frozen the bank reserves of Russian NORP bank And if you don't think that every single Maybe not every single but there's substantial number of finance ministers around the world have to rethink Where are there as a secure? I've had many people ask me What do I do if my assets in China GPE What do I do with my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar disagreement or conflict are those assets subject to immediate abandonment. These are questions everybody's gonna ask whether they talk about them a lot or not. They're gonna be asked I'm not saying we'll go to 100% PERCENT investment in your own country but boy the risk premium has significantly gone up I mean is this just a giant politicization of assets around the world as you see it given that now governments are getting involved in a much more Way in terms of the resources that they own oversee and trade. Companies. We've had to abandon assets immediately because of a political because of a conflict. So now you have to anticipate. Where in the world might we not like the activities of a future regime? You can come up with a long list of where you might be uncomfortable and you have to truly change your your risk profile there so we're in the middle of seeing a very effective use. Of the weaponization of resources. Now, not everybody can weaponize the resources because they don't have They don't have enough resources. So, to the extent that this is the biggest rescue you see on the horizon over the the medium to long term. What about it really keeps you up at night TIME ? There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy and in the world that we live in like it or not the the change in the world toward cheap energy mobilization cars oil gas is used for clothing it's used for significant amount of products and again food is food and I get concerned as to what can happen in these these Countries If if oil and gas does get to be $ 200 MONEY a barrel And if Supply PERSON . The actual food supply gets disintermediated. I think you could have ramifications. We haven't, we haven't seen. Now, I'm not, Figure these things out but I I think the quicker The world focuses on it and and it meets that they have to supply and be independent of global trade in his best way they can the better for their populations.
Saying everybody but you know the vast amount of society Interested in things that six 1 billion QUANTITY people And it's hiring Africa Asia LOC are still trying to reach middle class and if we raise their energy costs dramatically I don't think they're gonna be you know they're not gonna be happy about that and I I think the Arab Spring DATE fundamentally started over food prices and their basic instinct in need is to feed heat cloth and take care of their family. Forces that are reversing decades DATE of Globalization ORG . Well, it might be just the safety of these supply chains and possibly the actions by Russia GPE are a highlight to that but again, go back to Brexit PERSON , a decision By the UK GPE People In a vote to take back some of there also they'd outsource their labor force to Europe LOC and they had started to make a decision to pull it back for whatever reasons they didn't like outsourcing again outsourcing your financial management. To the EU ORG and the ECB ORG . You mentioned the outsourcing of financial assets. On one CARDINAL hand I'm wondering what impact do the sanctions have. Some of our policy moves here are gonna have very long term ramifications in this environment we've frozen the bank reserves of Russian NORP bank re And if you don't think that every single Maybe not every single but there's substantial number Of finance ministers around the world have to rethink Where are there as a secure? I've had many people ask me What do I do if my assets in China GPE ? What do I do with my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar disagreement or conflict are those assets subject to immediate unbandonment these are questions everybody's gonna ask whether they talk about them a lot or not they're gonna be asked I'm not saying we'll go to 100% PERCENT investment in your own country but boy the risk premium has significantly gone up. I mean, is this just a giant politicalization of assets around the world? As you see it, given that now, governments are getting involved in a much more Way in terms of the resources that they own oversee and trade. Companies. We've had to abandon assets immediately because of a political because of a conflict. So now you have to anticipate where in the world might we not like the activities of a future You can come up with a long list of where you might be uncomfortable and you have to truly change your your wrist profile there. So, we're in the middle of seeing a very effective use. Weaponization of resources. Now, not everybody can weaponize the resources because they don't have They don't have enough resources. So, to the extent that this is the biggest risk you see on the horizon over the the medium to long term. What about it really keeps you up at night TIME ? There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy and in the world that we live in like it or not The change in the world toward cheap energy Asian NORP cars oil gas is used for clothing it's used for significant amount of products and again food it's food and I get concerned as to what can happen in these these If if oil and gas does get to be $ 200 MONEY a barrel And if The supply the actual food supply gets disintermediated I think you could have ramifications we haven't we haven't seen now I'm not I'm pretty bullish on the world so I think people think you're these things out but I I think the quicker The world focuses on it and and admits that they have to supply and be independent of global trade in his best way they can the better for their populations.
What do I do with my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar disagreement or conflict are those assets subject to immediate unbandonment. These are questions everybody's gonna ask whether they talk about them a lot or not. They're gonna be asked I'm not saying we'll go to 100% PERCENT investment in your own country but boy the risk premium has significantly gone up. I mean, is this just a giant literization of assets around the world? As you see it, given that now, governments are getting involved in a much more Way in terms of the resources that they own oversee and trade. Companies. We've had to abandon assets immediately because of a political because of a conflict. So now you have to anticipate where in the world might we not like the activities of a future You can come up with a long list of where you might be uncomfortable and you have to truly change your your risk profile there so we're in the middle of seeing a very effective use. Of the weaponization of resources. Now, not everybody can weaponize the resources because they don't have They don't have enough resources. So, to the extent that this is the biggest rescue see on the horizon over the the medium to long term. What about it really keeps you up at night TIME ? There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy and in a world that we live in like it or not the the change in the world toward cheap energy, mobilization, cars, oil gases used for clothing, it's used for significant amount of products, and again, food, it's food, and I get concerned as to what can happen in these these Countries If if oil and gas does get to be $ 200 MONEY a barrel And if The supply, the actual food supply gets disintermediated. I think you could have ramifications. We haven't, we haven't seen. Now, I'm not, Bullish on the world so I think people figure these things out but I I think the quicker The world focuses on it and and it meets that they have to supply and be independent of global trade in its best way they can the better for their populations. The world like bloomberg PERSON . In the coming months DATE do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Analyze markets You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so software is come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or rob Gonna decide whether or not a human ever gets their eyes on it. That might not be totally inclusive or not.
$ 200 MONEY a barrel And if The supply, the actual food supply, gets disintermediated. I think you could have ramifications. We haven't, we haven't seen. Now, I'm not I'm I'm pretty bullish on the world so I think people figure these things out but I I think the quicker The world focuses on it and and admits that they have to supply and be independent of global trade in his best way they can the better for their populations. The world like bloomberg PERSON . Seven% in the coming months DATE do you see that coming Where are the job cuts to come from? More than 120 CARDINAL countries the moment news breaks 24 hours TIME a day Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so software is come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or robot Gon ORG na decide whether or not a human ever gets their eyes on it. How this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI EVENT ? So Life, you're the CEO of Roblox but on Roblox PERSON , you're builder man. Maybe. You know that name we just started up 2 weeks DATE after we launched and we're all picking our own usernames Everyone picked one I just said You've had the same avatar since 2004 DATE . That's right. That's awesome. Do you still play? I do. I wish I could play the whole day. I have to be a CEO. I'm probably on everyday but not as much as I would like. I have four CARDINAL kids. I love all of those. I have a bit of a theory. I have four CARDINAL kids. Oh, you do? Yeah, they're now, Growing up watching me do this. Yeah. Another, they're pretty savvy, social media people, but I'm optimistic someday. They're gonna be using Roblox PERSON for some other reason. Like communicating or more working or something like that. And then they're gonna be, oh gosh, I was like forest to be on robots. It's a Port Monto of robots and blocks.
No one covers the world like bloomberg PERSON . Seven% in the coming months DATE do you see that coming Taiwan GPE and China GPE . We will not just cut and run. The moment news breaks 24 hours TIME a day. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now Type phrases in everyday English LANGUAGE in the command line. Compare financials Analyze markets You can enter phrases. Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications. So softwares come in to automate the process. You wanna write your resume for robots not for humans. The only job your resume has is to be comprehensible to the software that is reading it because that software or robot Gon ORG na decide whether or not a human ever gets their eyes on it. Bio certain segment of the population that might not be totally inclusive or not be Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? So in real life you're the CEO of Roblox but on Roblox you're builder man. Maybe You know that name we just started up when is maybe 2 weeks DATE after we launched and we're all picking our own usernames and everyone picked one I just said no they're mad so you've had the same avatars since 2004 DATE that's right that's awesome do you still play? I do. I wish I could play the whole day. I have to be Yeah. I'm probably on every day but not as much as I would like. I have four CARDINAL kids. Who's on Roblox a lot. He said, his favorite games are the Tycoon games. Lumber tycoon theme park tycoon. I love those. I love all of those. I have a bit of a theory. I have four CARDINAL kids. Oh, you do? Yeah, they're now in they've grown up watching me do this. Yeah. Another, they're pretty savvy, social media people, but I'm optimistic someday. They're gonna be using Roblox Other reason like communicating or more working or something like that and then they're gonna be oh gosh it's like forest to be on robots. It's a Port Monto of robots and blocks where users can build and play games in a 3d world. Has boo into a global online gaming jogger knot that kids are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact roadblocks was building the metaverse long before Mark Zuckerberg PERSON claimed a new name for Facebook. But what does the future matters really look like and how do we cultivate a civil digital society within it that keeps kids safe? Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roadblocks CEO and co founder David Buzuki PERSON
No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Find people Analyze Marcus. You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so software is come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or robot Gon ORG na decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. TC I think four CARDINAL most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? So in real life you're the CEO of Roblox but on Roblox you're builder man. Maybe You know that name we just started up 2 weeks DATE after we launched and we're all picking our own usernames And everyone picked one I just said You've had the same avatars since 2004 DATE . That's right. That's awesome. Do you still play? I do. I wish I could play the whole day. I have to be a CEO. I'm probably on everyday but not as much as I would like. I have four CARDINAL kids. A lot. He said, his favorite games are the tycoon games. Oh, lumber tycoon theme park tycoon. I love those. I love all of those. I have a bit of a theory. Four CARDINAL kids. Oh, you do. Now it they've grown up watching me do this. Yeah. Another they're pretty savvy social media people. But I'm optimistic someday. They're gonna be using Roblox PERSON for some other reason. Like communicating or more working or something like that. And then they're gonna be oh gosh. I was like forest to be on robots. It's a Port Monto of robots and blocks where users can build and play games in a 3d world. Global online gaming juggernaut that kids are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact roadblocks was building the metaphors long before Mark Zuckerberg PERSON claimed a new name for Facebook. And how do we cultivate a civil digital society within it that keeps kids safe? Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roblox CEO and co founder David Bazooki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be.
Gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FDC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate a eye? So in real life you're the CEO of Roblox but on Roblox you're builder man. You know that name it we just thought it up when there's maybe 2 weeks DATE after we launched and we're all picking our own usernames Everyone picked one. I just said, no, they're mad. So, you've had the same avatars since 2004 DATE . That's right. That's awesome. Do you still play? You. I wish I could play the whole day. I have to be a CEO. So how often do you play? I'm probably on everyday but not as much as I would like. I have four CARDINAL kids. I have a 9 year old DATE son who's on roadblocks a lot. He said his favorite games are the tycoon games. Oh lumber tycoon theme park tycoon. I love those. I love all of those. I have a bit of a theory. Have four CARDINAL kids. Oh, you do. Now it they've grown up watching me do this. Yeah. Another they're pretty savvy social media people. But I'm optimistic someday. They're gonna be using Roblox PERSON for some other reason. Like communicating or more working or something like that. And then they're gonna be oh gosh. I was like forest to be on robots. It's a Port Monto of robots and blocks where users can build and play games in a 3d world roadblocks has boobed into a global online gaming juggerna Kids are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact Roblox PERSON was building the Mediverse PERSON long before Mark Zuckerberg PERSON claimed a new name for Facebook. Civil society within it that keeps kids safe. Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roadblocks CEO and co-founder David Bazooki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be with you. Well, I'm a parent. I'm a mom and so I'm been really excited to have this conversation. For parents and anyone out there who still doesn't quite What exactly are kids doing on Rob Yeah PERSON kids on Roblox aren't just playing they're learning they're hanging out together Can't be together in real life. They're hanging out on roadblocks. They Playing hiding goes sick they could be pretending they're running a store or a pizza parlor they could be making the next big game or adventure so it's really a wide range of things and it involves doing things together pretending you're together so right now it's Games or experiences four CARDINAL kids by kids how old are these players how old are these developers we have young players who are getting interested in coding who are getting interested in designing things but more and more the community on roadblocks has blossomed into this super rich System thousands CARDINAL of developers making a living on the platform some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year so how many of these developers are really kids and how many of these Are now grown ups. Yeah, well, think two 1 million QUANTITY plus developers. A lot of them are grown ups and more and more. In addition to the natural organic people that started on roadblocks, we're starting up studios come in on the platform as well. Professional game developers who are developing on other platforms starting to take a look So our developer demo A little bit older although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know,
It's a port monto of robots and blocks where users can build and play games in a 3d world. Global online gaming juggernaut that kids are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact roadblocks was building the metaphors long before Mark Zuckerberg PERSON claimed a new name for Facebook. But what does the future metaverse really look like and how do we cultivate a civil digital society within it that keeps kids safe? Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roblox CEO and co founder David Bazooki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be with you. Well, I'm a parent. I'm a mom and so I'm been really excited. To have this conversation. For parents and anyone out there who still doesn't quite understand. What exactly are kids doing on Roblox PERSON ? Yeah, Kids on Roblox aren't just playing they're learning they're hanging out together They can't be together in real life. They're hanging out on roadblocks. They could be playing hiding, go seek, they could be pretending they're running a store or a pizza parlor. They could be making the next big game or adventure. It's really a wide range of things and it involves doing things together, pretending you're together. So, right now, it's mostly Or experiences four CARDINAL kids by kids. How old are these players? How old are these developers? We have young players who are getting interested in coding, who are getting interested in designing things, but more and more the community on roadblocks has blossomed into this super rich eco Thousands CARDINAL of developers making a living on the platform. Some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year. So, how many of these developers are really kids and how many of these developers Grown ups. Yeah, well, think two 1 million QUANTITY plus developers. A lot of them are grown ups and more and more. In addition to the natural organic people that started on roadblocks, we're starting up studios come in on the platform as well. Professional game developers who are developing on other platforms starting to take a look at it. So, our Over demo A little bit older although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, muscling Does that change the dynamic of the platform? I I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform forever. By one CARDINAL of our early developers. It's not the kind of thing that I I think a normal Would ever think of but when developed by young creator, you know, we're gonna be, we're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it or there's gonna be a lightning storm. Like that kind of stuff. We see a lot of that creative game play coming from the younger developers. What were you into as a kid? Were you I was kind of a nerd when I was a kid. I was studied really hard. I luckily grew up in Eden Prairie LOC , Minnesota GPE at the time. It was out in the boonies from Minneapolis GPE , Minnesota GPE . There were sandpits and so We did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods. The one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time. And that kinda got me interested in this I also heard you were the captain of your high school TV quiz team. Yeah, so think of think of Minnesota GPE in the 1970 DATE 's and 80s DATE where every weekend DATE , two CARDINAL different schools compete, four CARDINAL students from each school, you know, and a really funny four CARDINAL by four CARDINAL configuration on a Had a pretty good quiz bowl team. You eventually made it to silicon Valley LOC . Yeah. Went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid and you coming to life. Yeah, you know, went to school, had a couple hard years DATE with jobs that weren't really that exciting, took a few months DATE off, and I got really excited about there's this whole blossoming educational.
That keeps kids safe. Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roadblocks CEO and co founder David Bazooki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be with you. Well, I'm a parent. Really excited to have this conversation. For parents and anyone out there who still doesn't quite What exactly are kids doing on Rob Yeah PERSON kids on Roblox aren't just playing they're learning they're hanging out together Can't be together in real life. They're hanging out on roadblocks. They Playing hiding goes sick they could be pretending they're running a store or a pizza parlor they could be making the next big game or adventure so it's really a wide range of things and it involves doing things together pretending you're together so right now it's Games or experiences four CARDINAL kids by kids how old are these players how old are these developers we have young players who are getting interested in coding or getting interested in designing things but more and more the community on roadblocks has blossomed into this super rich System thousands CARDINAL of developers making a living on the platform some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year so how many of these developers are really kids and how many of these Helpers ORG are now grown ups. Yeah, well, think two 1 million QUANTITY plus developers. A lot of them are grown ups and more and more. In addition to the natural organic people that started on roadblocks, we're starting up studios come in on the platform as well. Professional game developers who are developing on other platforms starting to take a look at it. So Developer demo A little bit older. Although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, mus I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform By one CARDINAL of our early developers. It's not the kind of thing that I I think a normal studio would ever think of. But when developed by young creator, you know, we're gonna be we're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it. Developers what were you into as a kid were you a gamer I was kind of a nerd when I was a kid I was studied really hard I luckily grew up in Eden Prairie Minnesota LOC at the time it was out in the boo There were sandpits and so we did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods. The one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time. And that kinda got me Dead PERSON in this. I also heard you were the captain of your high school TV quiz team. Yeah, that's so think of, think of Minnesota GPE in the 19 And 80s DATE where every weekend DATE two different schools compete four CARDINAL students from each school you know and a really funny four CARDINAL by four CARDINAL configuration on a quiz bowl thing and so yeah eating puri had Good quiz ball team. You eventually made it to Silicon Valley LOC . Yeah. You went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid and you coming to life. You know, went to school, had a couple hard years DATE with jobs that weren't really that exciting. Took a few months DATE off and I got really excited about there's this whole blossoming educational software, marketplace, the McIntosh ORG had just been introduced and it was just really interesting, exciting. I did a survey of all of that and a lot of the educational software was very So when we looked at physics it was a whole different idea could we make a wide open labratory we could build anything any physics experiment bring it to life measure it see what it feels like you sold that company made some money became an investor and you invested in Oh yeah, wow. I I had a friends to account. I'm dating myself a little bit. But I had a friend.
Roblox CEO and co founder David Buzuki PERSON . David's so great to have you here. I really appreciate it and it's wonderful to be with you. Well, I'm a parent, I'm a mom, and so I'm been really excited. To have this conversation. For parents and anyone out there who still doesn't quite What exactly are kids doing on Rob Yeah PERSON kids on Roblox aren't just playing they're learning they're hanging out together Can't be together in real life they're hanging out on roadblocks they Playing hiding goes sick they could be pretending they're running a store or a pizza parlor they could be making the next big game or adventure so it's really a wide range of things and it involves doing things together pretending you're together so It's mostly Or experiences four CARDINAL kids buy kids how old are these players how old are these developers we have young players who are getting interested in coding who are getting interested in designing things but more and more the community on roadblocks is blossom into this super rich eco Them thousands CARDINAL of developers making a living on the platform some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year so how many of these developers are really kids and how many of these developers are now grown up Yeah well think two 1 million QUANTITY plus developers a lot of them are grown ups and more and more in addition to the natural organic people that started on roadblocks we're starting up studios come in on the platform as well professional game developers who are developing on other platforms starting to take a look at So our developer demo A little bit older although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, muscl I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform forever. By one CARDINAL of our early developers. It's not the kind of thing that I I think a normal studio would ever think of. When developed by young creator you know we're gonna be we're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it. There's gonna be a lightning storm. Like that kind of stuff. We see a lot of that creative game play coming from the younger developers. Are you into as a kid? Were you a gamer? I was kind of a nerd when I was a kid. I was studied really hard. I luckily grew up in Eden Prairie LOC , Minnesota GPE at the time it was out in the boonies from Minneapolis GPE , Minnesota GPE . There were sandpits and so We did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods. The one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time. And that kinda got me interested in this I also heard you were the captain of your high school TV quiz team. Yeah, so think of think of Minnesota GPE in the 19 And 80s DATE where every weekend DATE two different schools compete four CARDINAL students from each school you know and a really funny four CARDINAL by four CARDINAL configuration on a quiz bowl thing so yeah eating puri had a pretty Quiz PERSON ball team. You eventually made it to silicon Valley LOC . Yeah. Went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid and you coming to life. You know, went to school, had a couple hard years DATE with jobs that weren't really that exciting. Took a few months DATE off and I got really excited about there's this whole blossoming educational software marketplace at the McIntosh ORG . It just been introduced and it was just really interesting, exciting. I did a survey of all of that and a lot of the educational software was very So when we looked at physics it was a whole different idea could we make a wide open labratory we could build anything any physics experiment bring it to life measure it see what it feels like you sold that company made some money became an investor and you invested in Oh yeah, wow. I I had a friends to account. I'm dating myself a little bit. But I had a friend to account. I'm curious what you learn from the early days DATE of social media.
This is young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, muscling in, Does that change the dynamic of the plaque? I I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform forever. By one CARDINAL of our early developers. It's not the kind of thing that I I think a normal Would ever think of but when developed by young creator, you know, we're gonna be, we're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it. There's gonna be a lightning storm. Like that kind of stuff. We see a lot of that creative game play coming from the younger developers. What were you into as a kid? Were you a game I was kind of a nerd when I was a kid I was studied really hard I luckily grew up in Eden Prairie Minnesota LOC at the time it was out in the boonies from Minneapolis GPE Minnesota GPE there were sandpits and We did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods that one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time and that kinda got me interested in this I also heard you were the captain of your high school TV quiz team. Yeah, so think of think of Minnesota GPE in the 1970 DATE 's and 80s DATE where every weekend DATE , two CARDINAL different schools compete, four CARDINAL students from each school, you know, and a really funny four CARDINAL by four CARDINAL configuration on a Had a pretty good quiz bowl team. You eventually made it to silicon Valley LOC . Yeah. Went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid in you coming to life Yeah, you know, went to school, had a couple hard years DATE with jobs that weren't really that exciting, took a few months DATE off, and I got really excited about there's this whole blossoming educational software, marketplace, the McIntosh ORG , it just been introduced, and it was just really interesting, exciting. I did a survey of all of that and a lot of the educational software was So when we looked at physics it was a whole different idea could we make a wide open labratory rebuild anything any physics experiment bring it to life measure it see what it feels like you sold that company made some money became an investor and you invested in Oh, yeah. Wow. I I had a friends through account. I'm dating myself a little bit. But I had a friends to account. I'm curious what you learn from the early days DATE of social media. Yes, so one thing I learned is it was really fun to invest but it's not my sweet spot. Like my sweet spot is trying to build and create things. I remembered, I think Having account number 79 CARDINAL on friends their and just seeing that wonderful thing of finding other people friend and friend playing around with that early user interface it's a little bit almost thinking of interactive physics where we were simulating the world and then They're seeing how important social is. Those are a couple of the components that have come together in roadblocks. So, when you start a Roblox in 2004 DATE , what was the idea back then? The feeling of this new category for me started feeling almost inexerable. Category that people have been talking about in sci ORG fi for many many years DATE . We've seen futurist talk about it. We've seen a lot of movies. We were thinking yes, a massive threeD co experience. Kids flocked to Roblox PERSON during a pandemic You went public in the middle of the pandemic 2021 CARDINAL 45 1 billion dollars MONEY market cap we spoke on that day even you have said that kind of growth won't keep up what kind of growth can we expect from roblox in Normal times. Ever is gonna be a part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school. How people. So they're gonna go to school. If I happen to be taking my science class and I can't get into the classroom and we're dissecting a frog. We'll probably dissect the frog in something like Roblox Simulation FAC which I think's gonna be very very powerful and for our company where there's a lot of people that are gonna end up working all around the world, some of us will be in the office, some won't. Having a common threeD
Went to school had a couple hard years with jobs that weren't really that exciting took a few months DATE off and I got really excited about there's this whole blossoming educational software marketplace at the McIntosh ORG it just been introduced and it was just really Exciting ORG . I did a survey of all of that and a lot of the educational software was very pre canned. So, when we looked at physics, it was a whole different idea. Could we make a wide open labratory? We could build anything, any physics, experiment, bring it to life, measure it, see what it feels like. You sold that company, made some Became an investor and you invested in Oh yeah, wow. I I had a friends to account. I'm dating myself a little bit. But I had a friend to work out. I'm curious what you learn from the early days DATE of social media. Yeah, so one thing I learned is it was really fun to invest but it's not my sweet spot. Like my sweet Trying to build and create things. I remembered, I think having account number 79 CARDINAL on friends. They're and just seeing that wonderful thing of finding other people, friend of friend, playing around with that early user interface. It's a little bit almost thinking of interactive physics where we were sim The world and then friends they're seeing how important social is those are a couple of the components that have come together in roadblocks so when you start a roadblocks in 2004 DATE what was the idea back then the feeling of this new category for me started feeling almost inexerable it's Category that people have been talking about in sci ORG fi for many many years DATE . We've seen futurist talk about it. We've seen a lot of movies. We were thinking yes immersive 3d co experience. Kids flocked to Roblox during a pandemic. You went public in the middle of the 2021 DATE , 45 1 billion dollars MONEY market cap. We spoke on that day DATE . Even you have said that kind of growth won't keep up. What kind of growth can we expect from Roblox PERSON ? In normal times. Be a part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school, how people. So they're gonna go to school in Roblox PERSON . If I happen to be taking my science class and I can't get into the classroom and we're dissecting Dissect the frog in something like roadblocks and a simulation which I think is gonna be very very powerful and for our company where there's a lot of people that are gonna end up working all around the world, some of us will be in the office, some won't Having a common threeD place where we can have those water cooler conversations where everyone has a desk but we get that serendipitous thing where we both happen to go over and chat. I think also is gonna be very big Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Access the financial world on demand. Here from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Microsoft ORG Sacha Nadela IBM's ORG Arvin Krishna PERSON micron technology Sanjay Majotra PERSON and that's just the start Added the cheap executives of Adobe ORG Deloitte Gap VM ware and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? But no Points ORG to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE .
And you became an investor and you invested in Oh yeah, wow. I I had a friends to account. I'm dating myself a little bit. But I had a friend to account. I'm curious what you learn from the early days DATE of social media. Yes, so one thing I learned is it was really fun to invest but it's not my sweet spot. Like my sweet spot is trying to build and create things. I remembered, I think Account number 79 CARDINAL on friends. They're and just seeing that wonderful thing of finding other people, friend of friend, playing around with that early user interface. It's a little bit almost thinking of interactive physics where we're simulating the world and then friends, they're seeing how Those are a couple of the components that have come together in roadblocks. So, when you start a Roblox in 2004 DATE , what was the idea back then? The feeling of this new category for me started feeling almost inexerable. It's a category that people have been talking Sci PERSON fi for many many years DATE . We've seen futurist talk about it. We've seen a lot of movies. We were thinking yes immersive 3d co experience. Kids flocked to Roblox during a pandemic. You went public in the middle of the Make 2021 45 1 billion dollars MONEY market cap. We spoke on that day DATE . Even you have said that kind of growth won't keep up. What kind of growth can we expect from Roblox PERSON ? In normal times. Part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school. How people. So they're gonna go to school in Roblox PERSON . If I happen to be taking my science class and I can't get into the classroom and we're Dissecting a frog. We'll probably dissect the frog in something like Roblox PERSON and a simulation. Which I think's gonna be very very powerful. And for our company where there's a lot of people that are gonna end up working all around the world. Some of us will be in the office Having a common threeD place where we can have those water cooler conversations where everyone has a desk but we get that serendipitous thing where we both happen to go over and chat. I think also is gonna Very big. Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Access the financial world on demand Hear from leading economists Policy makers And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG Sacha Nadela IBM's ORG Irvin Krishna PERSON my crime technology Sanjay Mayhotra PERSON and that's just And that doesn't count Indians NORP running companies all over the world. Incredibly competitive education system if you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Three fourths QUANTITY of the immigrants receiving coveted Hone B visas for the US GPE and it's Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built. A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in the space that I think is ultimately got so many years of growth to it and is a new category following other types of technologies. There's still so much innovation.
Yeah, wow. I had a friends to account. I'm dating myself a little bit. But I had a friend to account. I'm curious what you learn from the early days DATE of social media. Yes, so one thing I learned is it was really fun to invest but it's not my sweet spot. Like my sweet spot is trying to build and create things. I remembered, I think having Number 79 CARDINAL on friends. They're and just seeing that wonderful thing of finding other people, friend of friend, playing around with that early user interface. It's a little bit almost thinking of interactive physics where we were simulating the world and then friends their seeing how important Those are a couple of the components that have come together in roadblocks. So, when you start a Roblox in 2004 DATE , what was the idea back then? The feeling of this new category for me started feeling almost inexerable. It's a category that people We've seen a lot of movies. We were thinking yes immersive 3d co experience. Kids flocked to roadblocks during the pandemic. In the middle of the pandemic 2021 CARDINAL 45 1 billion dollars MONEY market cap we spoke on that day even you have said that kind of growth won't keep up what kind of growth can we expect from roblox in normal times we believe Be a part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school. How people. So they're gonna go to school in Roblox PERSON . If I happen to be taking my science class and I can't get Classroom PRODUCT and were dissecting a frog. We'll probably dissect the frog in something like Roblox PERSON and a simulation which I think is gonna be very very powerful and for our company where there's a lot of people that are gonna end up working all around the Some of us will be in the office some won't having a common threeD place where we can have those water cooler conversations where everyone has a desk but we get that serendipitous thing where we both happen to go over and chat. I think also is Be very big. Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Access the financial world on demand Here from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabets sun dart patch eye Microsoft ORG such a Nadella IBM's ORG Irvin Krishna PERSON my crime technology Sanjay Mayhotra PERSON and that's just the Added the cheap executives of Adobe, Deloy, Gap ORG , VMware ORG , and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top but Technology it gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Visas GPE for the US GPE . And it's a Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in the space that I think is ultimately got so many years of growth to it and it's a new category following other types of technologies. There's still Innovation to be done and there's so much invention to be done in this category that it's mind boggled.
Powerful and for our company where there's a lot of people that are gonna end up working all around the world, some of us will be in the office, some won't. Having a common threeD place where we can have those water cooler conversations where everyone has a desk but we Where we both happen to go over and chat. I think also is gonna be very big. Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun dart PERSON patchai Microsoft ORG such a Nadella IBM's ORG Irvin Krishna PERSON micron technology Sanjay Mayhotra PERSON and that's Gap VM ORG ware and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Competitive education system. If you can survive the pressure it takes to get into one of the Indian NORP institutes of technology. It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Visa ORG for the US GPE . And it's a Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built. A better verse what do you think I think we've started and it goes back to how exciting it is to to have a company in this space that I think is ultimately got so many years of growth to it and it's a new category following other types of technologies. There's still so much innovation And there's so much invention to be done in this category that it's mind boggling. That metaverse the term is just How do you respond to that? This type of technology is much more difficult than the net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zucker Announced PERSON his plan to Change Facebook's name to Meta ORG as if it was something new. Did that kinda bother you? No, of course not. It's Hard to predict in five to 10 or 20 years CARDINAL Companies that really figure it out and there's so many elements of innovation that are needed. Having a UGC ORG community, one CARDINAL of our strengths. We think that's like a huge starting point for us, but we're early in our quest for innovation here. Roblox has built a huge business selling Does this evolve into a much bigger marketplace? Revelation that people would ultimately make a living on platforms like this that started this digital currency is very Roblox centric and that we're a systems company or a utility so it has form this robust economy it's allowed us to keep robot you know Roblox PERSON is free for the Majority would Roblox have a partner with some of these other companies working on the Metaverse whether it is Meta ORG or Unity or epic or Microsoft ORG . The core technology of, you know, how are we gonna ultimately support 50 1000 CARDINAL people in real time on a phone, going to a concert together and waving at your friends. I think that's gonna Lot of engineering work that each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one CARDINAL place to another. I think the
Indians NORP make up Three fourths QUANTITY of the immigrants receiving coveted Hone B visas for the US GPE and it's Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built. A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in the space that I think is ultimately got so many years of growth to it and is a new category following other types of technologies. There's still so much innovation to be done. And there's so much invention to be done in this category. That's mine boggling. Think that Metaverse PERSON the term is just How do you respond to that? This type of technology is much more difficult than the net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zuckerberg PERSON announced his And to And change Facebook's name to Meta ORG as if it was something new. Did that kinda bother you? No, of course not. It's Hard to predict in five to 10 or 20 years CARDINAL what are the companies that really figure it out and there's so many elements of innovation that are needed having a UGC ORG community one CARDINAL of our strengths we think that's like a huge starting point for us but we're early in our quest for innovation here Roblox has Huge business selling Does this evolve into a much bigger marketplace? That people would ultimately make a living on platforms like this that started this digital currency is very roadblock centric and that we're a systems company or a utility so it has form this robust economy it's allowed us to keep robot you know Roblox PERSON is free for the vast majority Roblox ever partner with some of these other companies working on the Metaverse whether it is Meta ORG or unity or epic or Microsoft ORG . The core technology of, you know, how are we gonna ultimate Support 50 1000 people in real time on a phone going to a concert together and waving at your friends I think that's gonna be a lot of engineering work that each company is gonna be working on and it's gonna be really hard as far as ultimately can an avatar go from one CARDINAL place to another I think they'll be lightweight way Starting to think about that. So, what role do you think Apple ORG and Android ORG should play in the Metaverse? And and would their policies need to change to really support this vision? The biggest thing we would take advantage of if it were to happen is In those store fees. We we stay out of it. We like google and apple kind of run their businesses but when we think about more and more developers making a living on platforms like us and having to build stuff if those store fees were to change, we would move most of that money back to our Your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yum. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job? In the third week DATE , when we were live, you can go imagine Eric PERSON and myself back in our small office. Eric PERSON and I said, oh my gosh, safety and civilities. It's we're gonna have to do. We had maybe 100 CARDINAL people at the time chatting on roadblock We saw a few not that egregious but early signs and we just made the call this is gonna be the foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes Platform gets human reviewed. We filter texts very stringently especially for 13 DATE and under players. We use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us How after mistake are you about AI and tech being able to do that? I'm really actually optimistic. We would never compare to the real world because our standards are so much more stringent. But I do believe this will just keep getting better and better and I think over time it'll be
Following other types of technologies. There's still so much innovation to be done. And there's so much invention to be done in this category. That's mind boggling. The critics think that metaverse the term is just marketing. Respond to that. This type of technology is much more difficult than the net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zuckerberg PERSON To his plan to Matters ORG and change Facebook's name to Meta ORG as if it was something new. Did that kinda bother you? No, of course not. It's Hard to predict in five to 10 or 20 years CARDINAL . Where did the companies that really figure it out? And there's so many elements of innovation that are needed. Having a UGC ORG community, one CARDINAL of our strengths. We think that's like a huge starting point for us, but we're early in our quest for innovation here. Roblox has Huge business selling Does this evolve into a much bigger marketplace? Make a living on platforms like this that started this digital currency is very roadblock centric and that we're a systems company or a utility so it has form this robust economy it's allowed us to keep robot you know roblox is free for the Majority. Would Roblox have a partner with some of these other companies working on the Metaverse whether it is Meta ORG or unity or epic or Microsoft ORG ? The core technology of, you know, how are we gonna ultimately support 50 1000 CARDINAL people in real time on a phone, going to a concert together and waving at your friends? I think that's Each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one CARDINAL place to another. I think they'll be lightweight ways of starting to think about that. So, what role do you think Apple ORG and Android ORG should play in the metaphors? And and would there polic To change to really support this vision. The biggest thing we would take advantage of if it were to happen is a change in those store fees. We we stay out of it. We like google and Apple ORG kind of run their businesses but when we think about more and more developers making a living on Like us and having to build stuff if those sorphies were to change we would move most of that money back to our developers your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yeah. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job? In the third week DATE , when we were live, you can go imagine Eric PERSON and myself back in our small office. Eric PERSON and I said, oh my gosh, safety and civilities. It's we're gonna have to do. We had maybe 100 CARDINAL people at the time chatting on roadblock We saw a few not that egregious but early signs and we just made the call this is gonna be the foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes Platform gets human reviewed. We filter texts very stringently especially for 13 DATE and under players. We use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us How often are you about AI and tech being able to do that? I'm really actually optimistic. We would never compare to the real world because our standards are so much more stringent. But I do believe this will just keep getting better and better and I think over time it'll get to the point where if a 6 year old DATE is Platform it's literally as if the parents wanted to be there with them watching everything we'll be able to offer that type of thing no a lot of parents are terrified they're terrified of a future metaverse they don't understand the parental controls do you understand that feeling we do we actually have I think it creates a higher standard for us because I think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, the stories about Roblox being a playground for virtual fascists.
That I think is the ultimately got so many years of growth to it and it's a new category following other types of technologies. There's still so much innovation to be done and there's so much invention to be done in this category. That's mind boggling. Just marketing. How do you respond to that? This type of technology is much more difficult than the net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zuckerberg PERSON announced his plan to Own the meta verse and change Facebook's name to Meta ORG as if it was something new. Did that kinda bother you? No, of course not. It's Hard to predict in five to 10 or 20 years CARDINAL . What are the companies that really figure it out and there's so many elements of innovation that are needed. Having a UGC ORG community, one CARDINAL of our strengths. We think that's like a huge starting point for us, but we're early in our quest for innovation here. Roblox has Huge business selling Does this evolve into a much bigger marketplace? Revelation that people would ultimately make a living on platforms like this that started this digital currency is very roadblock centric and that we're a systems company or a utility so it has formed this robust economy it's allowed us to keep robot you know Roblox PERSON is free for the vast majority what Roblox ever partner with some of these other Nobody PERSON 's working on the metaverse whether it is meta or unity or epic or Microsoft ORG . Core ORG technology of, you know, how are we gonna ultimately support 50 1000 CARDINAL people in real time on a phone, going to a concert together and waving at your friends. I think that's gonna be a lot of engineering work that each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one To another. I think they'll be lightweight ways of starting to think about that. So, what role do you think Apple ORG and Android ORG should play in the metaphors? And and would there policies need to change to really support this vision? The biggest thing we would Take advantage of if it were to happen is a change in those store fees. We we stay out of it. We like google and apple kind of run their businesses but when we think about more and more developers making a living on platforms like us and having to build stuff, if those store fees were to change, we would move most of that money back Developers. Your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yeah. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job In the third week DATE , when we were live, you can go imagine Eric PERSON and myself back in our small office. Eric PERSON and I said, oh my gosh, safety and civilities. It's we're gonna have to do it. We had maybe 100 CARDINAL people at the time chatting on roadblocks. We saw a few not that egregious but early signs and we just made the call. This is gonna be The foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes on our platform gets human reviewed we filter texts very stringently For 13 DATE and under players. We use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us. After mistake are you about AI and tech being able to do that I'm really actually optimistic we would never compare to the real world because our standards are so much more stringent but I do believe this will just keep getting better and better and I think overtime it'll get to the point where if a 6 year old DATE is on our platform it's As if the parents wanted to be there with them watching everything we'll be able to offer that type of thing no a lot of parents are terrified they're terrified of a future metaphors they don't understand the parental controls do you understand that feeling we do we actually have to I think it creates a higher For us because I think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, the story.
That each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one CARDINAL place to another. I think they'll be lightweight ways of starting to think about that. So, what role do you think Apple ORG and Android ORG should play in the Metaverse? And and Policies ORG need to change to really support this vision. The biggest thing we would take advantage of if it were to happen is a change in those store fees. We we stay out of it. We like google and apple kind of run their businesses but when we think about more and more developers making a living on Like us and having to build stuff if those store fees were to change we would move most of that money back to our developers your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yeah. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job In the third week DATE , when we were live, you can go imagine Eric PERSON and myself back in our small office. Eric PERSON and I said, oh my gosh, safety and civilities. It's we're gonna have to do. We had maybe 100 CARDINAL people at the time chatting on roblox. We saw a few not that egregious but early signs and we just made the call. This is gonna be The foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes on our platform gets human reviewed we filter texts very stringently especially 13 and under players. We use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us. After mistake are you about AI and tech being able to do that I'm really actually optimistic we would never compare to the real world because our standards are so much more stringent but I do believe this will just keep getting better and better and I think over time it'll get to the point where if a 6 year old DATE is on our platform it's As if the parents wanted to be there with them watching everything we'll be able to offer that type of thing. No a lot of parents are terrified. They're terrified of a future. They don't understand the parental controls. Do you understand that feeling? We do. We actually have to I think it creates a higher For us because I think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, About Roblox being a playground for virtual fascists. What? Sex tape of her. That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in the rough are platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention. But very unfortunate and Well, you know, our vision is to be the most civil place for everyone. Alphabet in Google ORG . This question about kids and tech habits and screen time and he said it's something that even stresses him out. You know, this is the guy who runs one of the most powerful technology companies in the world. I have four CARDINAL kids. You have four CARDINAL kids. Did it stress you out? Like, how did you deal with your kids? I think it highlights how much it's a responsibility of both Platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more Hanging GPE out together we're being on the phone together or doing stuff together and a lot less of it is isolated either consuming content by myself or grinding away at something by myself so we do like the fact that most of this is either We're involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? People ask me all the time what is the key to being a really good investor my
We would never compare to the real world because our standards are so much more stringent but I do believe this will just keep getting better and better and I think over time it'll get to the point where if a 6 year old DATE is on our Form. It's literally as if the parents wanted to be there with them watching everything. We'll be able to offer that type of thing. Now, a lot of parents are terrified. They're terrified of a future metaverse. They don't understand the parental controls. Do you understand that feeling? We do. We actually have to It creates a higher standard for us because I think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, About roblox being a playground for virtual fascists. What? Sex tape of her. That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in the off our platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention. But very unfortunate and Well, you know, our vision is to be the most civil place for everyone. Alphabet and Google this question about kids and tech habits and screen time and he said it's something that even stresses him out. You know, this is the guy who runs one of the most powerful technology companies in the world. I have four CARDINAL kids. You have four CARDINAL kids. Did it stress you out? Like, how did you deal with your kids? I think it highlights how much it's a responsibility of both Platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more Hanging GPE out together we're being on the phone together or doing stuff together and a lot less of it is isolated either consuming content by myself or grinding away at something by myself so we do like the fact that most of this is either We're involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. I'm David Weston PERSON . Renewables PERSON . This is a level of uncertainty that we haven't had to deal with. You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars Like a science fiction writer and talk about it and I what I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like Meta ORG horizon worlds is does that You know, more experiences like that for adults. We sometimes think of roblox ultimately as fading into the background as a utility like the old
For us because i think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, The stories about Roblox being a playground for virtual fascist. Well there was just a story about Kim Kardashian's PERSON own child Sex tape of her. Happened there? That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in the off our platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention. But very unfortunate and Well, you know, our vision is to be the most civil place for everyone. The CEO of Alphabet and Google this question about kids and tech habits and screen time and he said it's something that even stresses him out. You know, this is the guy who runs one of the most powerful technology companies in the world. I have four CARDINAL kids. You have four CARDINAL kids. Did it stress you out? Like, how did you deal with your kids? I think it highlights how much it's a responsibility of both Platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more Hanging GPE out together we're being on the phone together or doing stuff together and a lot less of it is isolated either consuming content by myself or grinding away at something by myself so we do like the fact that most of this is either Were involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet Revolution. Kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. I'm David Weston PERSON . We think that's the next secular shift. Yes, it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars Like a science fiction writer and talk about it and I what I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like Met PRODUCT a horizon worlds is does that You know, more experiences like that for adults. We sometimes think of robots ultimately as fading into the background as a utility like the electric grid. Even those photo realistic and there's all these awesome avatars and connection and Identity around the world. The things we start seeing built on this are wide range of things. So you imagine this not just for kids but for everyone Question. Absolutely. What about entertainment? Would Roblox ever make a Netflix PERSON show? Developers made a Netflix PERSON show. So, we would, we would feel much more authentic if one of the creators on roadblocks is coming up with avatars and stories and ideas and characters like that. We want them to be in the limelight. Rob PERSON share.
Over their kids. There have been some serious content challenges, you know, Stories about Roblox being a playground for virtual fascists. What? Sex tape of her. Happened there. That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in their off our platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention but very unfortunate and Well, you know, our vision is to be the most civil place for everyone. Hi the CEO of Alphabet GPE and Google this question about kids and tech habits and screen time and he said it's something that even stresses him out you know this is the guy who runs one of the most powerful technology companies in the world I have four CARDINAL kids you have four CARDINAL kids did it stress you out like how did you deal with your kids How much it's a responsibility of both platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more Hanging GPE out together. We're being on the phone together or doing stuff together and a lot less of it is isolated either consuming content by myself or grinding away at something by myself. So, we do like the fact that most of this is either Were involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? People ask me all the time what is the key to being a really good investor? I tell them it's to surround yourself with and work with the best and best as you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world. That I would like to have managing my money. Revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. I'm David Weston PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars Like a science fiction writer and talk about it and I what I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like Meta ORG horizon worlds is does that You know, more experiences like that for adults. We sometimes think of roblox ultimately as fading into the background as a utility like the electric grid. Even though it's photo realistic, and there's all these awesome avatars and connection, and ident Around the world. The things we start seeing built on this are wide range of things. So you imagine this not just for kids but for everyone. Adults too. Okay. Absolutely. What about entertainment? Would Roblox ever make a Netflix PERSON show? We would love it if one of our developers made a Netflix PERSON show. So, we would, we would feel much more authentic if one Creators on Roblox who's coming up with avatars and stories and ideas and characters like that we want them to be in the limelight. Roblox chairs took a dive on the back of Netflix GPE results which Obviously.
People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest invest In the world. The people that I would like to have managing my money. At the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. I'm David Weston PERSON . Yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Television and radio You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars Like a science fiction writer and talk about it and I what I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like Meta ORG horizon worlds is does that You know, more experiences like that for adults. We sometimes think of roblox ultimately as fading into the background as a utility like the electric grid. Even though it's photo realistic, and there's all these awesome avatars and connection, and identity The world. The things we start seeing built on this are wide range of things. So, you imagine this not just for kids but for everyone. Adults too. Okay. Absolutely. What about entertainment? Would Roblox ever make a Netflix PERSON show? We would love it if one of our developers made a Netflix PERSON show. So, we would, we would feel much more authentic if one of the creators on Roblox PERSON who's coming up with avatars and stories and ideas and characters like that. We want them to be in the limelight. Roblox Took a dive on the back of Netflix GPE results which obviously plummeted. Our investors reading too much into the connection there. I think our company is somewhat unique and what is very exciting to go to work and be the CEO is being in a market like this, you know, where we think ultimately, Bill People PERSON are gonna use this type of technology and the other exciting thing about this market So many big inventions that still have to happen. It feels like we're pretty mature but inside our company, we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step. Would roadblocks ever consider more in game advertising? Yeah, there's a funny trivia note I would share to all the Roblox PERSON fans out there. There was The very first ORDINAL way we monetize was advertising and then there was also a time when we had pre-roll video on roadblocks that's all gone now it's gone for a couple of reasons we didn't want it to interfere with the user experience and also our our virtual economy has become such a powerful way to power this that we are able to Down. In the future though, I think there's a certain type of advertising that is kids safe, that is immersive that doesn't get in your way. Take away from the ethos of what makes roblox green yeah I think our the people on Roblox you know there there to authentically connect with their friends and as long as what we're doing with these brands is very clear and non deceptive appropriate for those ages I think they'll they'll figure The balance of how much time do we go into a store versus how much time do we go to a crazy adventure tycoon and you know build an amusement park together. So either way this could be a huge new revenue stream for you. I believe it's
Does that You know, more experiences like that for adults. We sometimes think of roblox ultimately as fading into the background as a utility like the electric grid. Even those photo realistic and there's all these awesome avatars and connection and Danity around the world. The things we start seeing built on this are wide range of things. So, you imagine this not just for kids but for everyone. Adults too Okay. Absolutely. What about entertainment? Would Roblox ever make a Netflix PERSON show? We would love it if one of our developers made a Netflix PERSON show. So, we would, we would feel much more authentic if one of the creators on Roblox PERSON who's coming up with avatars and stories and ideas and characters like that. We want them to be in the limelight. Rob Took PERSON a dive on the back of Netflix GPE results which Plummeted. Our investors reading too much into the connection there. I think our company is somewhat unique and what is very exciting to go to work and be the CEO is being at a market like this, you know, where we think ultimately, Billions of people are gonna use this Technology and the other exciting thing about this market Many big inventions that still have to happen. It feels like we're pretty mature but inside our company, we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step. Consider more in game advertising? Yeah, there's a funny trivia. Note I would share to all the Roblox PERSON fans out there. There was a time, the very first ORDINAL way we monetize was advertising, and then there was also a time when we had pre-roll video on Roblox PERSON . That's all gone now. It's gone Couple of reasons. We didn't want it to interfere with the user experience. And also our our virtual economy has become such a powerful way to power this that we are able to take that down. In the future though I think there's a certain type of advert That is kids safe that is immersive that doesn't get in your way. And how do you make sure that doesn't take away from the ethos of what makes Roblox PERSON great? Yeah, I think our the people on Roblox PERSON , you know, they're there to authentically connect with their friends As long as what we're doing with these brands is very clear non-deceptive appropriate for those ages DATE . I think they'll they'll figure out the balance of how much time do we go into a store versus how much time do we go to a crazy adventure tycoon and you know, build an amusement park together. So, either way, this could Huge new revenue stream for you. I believe it's an awesomely huge revenue stream and at the same time, we've been very gentle towards it. So, as you look ahead, what do you think are the biggest challenges? Roblox will face. Please out which we hope it does and we have people of all ages on the platform and we're around the world I think this maintaining that civility as we grow as we have older people who might wanna do go to a political rally thinking ways to do that in a systemic way that's a big challenge it takes a lot of thought I think thinking through the I I really like we're very technology driven company so it's fun to be running a company where we have to do these seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenges Are interesting. We do a little rapid fire section just to get this. Okay. Awesome ORG . First ORDINAL question what's your morning routine Wake up. Go outside on my porch do a CrossFit workout Go to work. Where are you most productive? Home or office? Both. Different types of productivity, home zen state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show What are you binging? Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's this weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. Best life hack. Think it all gets down to the joy of health really. Like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that, everything else just completely falls. Hawk radio show. Yeah. Now that I've met you in person, I I get this. No way. Can you be sure to listen to yeah what was What's your Starting in college.
Ideas and characters like that we want them to be in the limelight robot shares took a dive on the back of Netflix GPE results which obviously plummeted our investors reading too much into the connection there I think our company is somewhat And what is very exciting to go to work and be the CEO is being at a market like this you know where we think ultimately Billions of people are gonna use this Hey we've technology and the other exciting thing about this market there's so many big inventions that still have to happen it feels like we're pretty mature but inside our company we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step would Locks ever consider more in game advertising? Yeah, there's a funny trivia note I would share to all the Roblox PERSON fans out there. There was a time. The very first ORDINAL way we monetize was advertising and then there was also a time when we had pre-roll video on Roblox PERSON . That's all gone now. It's gone Couple of reasons. We didn't want it to interfere with the user experience and also our our virtual economy has become such a powerful way to power this that we are able to take that down. In the future though, I think there's a certain type of Housing that is kids safe that is immersive that doesn't get in your way. Yeah, I think our the people on Roblox PERSON , you know, there, there to authentically connect with their friends As long as what we're doing with these brands is very clear and non deceptive, appropriate for those ages DATE . I think they'll they'll figure out the balance of how much time do we go into a store versus how much time do we go to a crazy adventure tycoon and you know, build an amusement park together. So, either way, this could be a huge new revenue I believe it's an awesomely huge revenue stream and at the same time, we've been very gentle towards it. So, as you look ahead, what do you think are the biggest challenges? Roblox will face. Plays out which we hope it does and we have people of all ages on the platform and we're around the world. I think it's maintaining that civility as we grow, as we have older people who might wanna do go to a political rally thinking ways to do that in a systemic way. That's a big challenge. It takes a lot of thought. I think thinking through the I I really like we're very technology driven company so it's fun to be running a company where we have to do these seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenges Super ORG interesting. We do a little rapid fire section just to get this. Okay, I'll give it a try. Awesome ORG . This is like First ORDINAL question what's your morning routine Wake up. Outside of my porch do a CrossFit workout Take a shower go to work. Where are you most productive? Home or office? Both. Different types of productivity, home, zen state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show right What are you binging? Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's this weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. Best life hack. I think it all gets down to The joy of health really like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that, everything else just completely falls. Talk radio show. Yeah. Now that I've met you in person, I I get this. No way. Your favorite fun to listen to yeah what was Hey so my GM ORG was I would say starting in college when I would have insomnia at 2 AM TIME I would turn on talk radio and you know all those famous KGO ORG people Bill Wattenberg PERSON Italian NORP Ferro ORG all that just And to the people calling in so I after acknowledge revolution was acquired and had a year I had a little time to dabble my jam was really trying to talk about outrageous topics you know Gambling, other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. Yeah. You know, it's like call your mom. Please call. So, it's really scary if you're a No one's calling inside I I made it really controversial.
Or authentic if one of the creators on Roblox PERSON is coming up with avatars and stories and ideas and characters like that we want them to be in the limelight Roblox PERSON chairs took a dive on the back of Netflix GPE results which Obviously plummeted. Our investors reading too much into the connection there. I think our company is somewhat unique and what is very exciting to go to work and be the CEO is being in a market like this, you know, where we think ultimately, Billy PERSON and people are gonna use this Type of technology and the other exciting thing about this market Many big inventions that still have to happen. It feels like we're pretty mature but inside our company, we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step. Would roadblocks ever consider more in game advertising? Yeah, there's a funny trivia note I would share to all the Roblox PERSON fans out there. There was a The very first ORDINAL way we monetize was advertising and then there was also a time when we had pre-roll video on roadblocks. That's all gone now. It's gone for a couple of reasons. We didn't want it to interfere with the user experience. And also our our virtual economy has become such a powerful way to power this that we are able to That down. In the future though, I think there's a certain type of advertising that is kids safe. That is immersive that doesn't get in your way. And how do you make sure that doesn't take away from the ethos of what makes Roblox PERSON great? Yeah, I think our the On Roblox, you know, they're there to authentically connect with their friends and as long as what we're doing with these brands is very clear and on deceptive, appropriate for those ages DATE . I think they'll they'll figure out the balance of how much Do we go into a store versus how much time do we go to a crazy adventure tycoon and you know build an amusement park together. So either way this could be a huge new revenue stream for you. I believe it's Awesomely huge revenue stream and at the same time, we've been very gentle towards it. So, as you look ahead, what do you think are the biggest challenges? Roblox will face? Please out which we hope it does and we have people of all ages on the platform and we're around the world I think Any that civility as we grow as we have older people who might wanna do go to a political rally thinking ways to do that in a systemic way that's a big challenge. It takes a lot of thought. I think thinking through the technology I I really like we're very technology driven company so it's fun to be running a company where We have to do these seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenges super interesting. We do a little rapid fire section just to get this. Okay. Are you guys better Awesome ORG . First ORDINAL question what's your morning routine Wake up. Go outside on my porch do a CrossFit ORG workout Shower ORG , go to work. Where are you most productive home or office? Both. Different types of productivity, home zen state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show right What are you binging? Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's this weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. I think it all gets down to the joy of health really like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that, everything else just completely falls. Hawk radio show. Yeah. Now that I've met you in person, I I get this. No way. Can you To yeah what was your style like what was your I would turn on talk radio and you know all those famous KGO ORG people Bill Wattenberg PERSON retalia all that just listen to the people calling in So I after acknowledge revolution was acquired and had a year I had a little time to dabble my jam was really trying to talk about outrageous topics you know Humbling other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. Yeah. You know, it's like call your mom. Please. So, it's really.
Versus how much time do we go to a crazy adventure tycoon and you know building amusement park together so either way this could be a huge new revenue stream for you I believe it's an awesome Huge revenue stream and at the same time, we've been very gentle towards it. So, as you look ahead, what do you think are the biggest challenges? Roblox will face. Please out which we hope it does and we have people of all ages on the platform and we're around the world I think maintaining that civility as we grow as we have older people who might wanna do go to a political rally thinking ways to do that in a systemic way that's a big challenge it takes a lot of thought I think thinking through the I I really like we're very technology driven company so it's fun to be running a company where we have to do the seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenges Are interesting. We do a little rapid fire section just to get this. Okay. Awesome ORG . First ORDINAL question what's your morning TIME routine? Wake up. Go outside on my porch do a crossfit workout Go to work. Where are you most productive home or office? Both. Different types of productivity, home zen state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show right What are you binging? Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. Best life hack. Think it all gets down to the joy of health really. Like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that. Everything else just completely falls. Hawk radio show. Yeah. Now that I've met you in person, I I get this. No way. Can you be sure to listen to? What's your Iheartradio and you know all those famous KGO ORG people Bill Wattenberg PERSON retaliate just listen to the people calling in So I after acknowledge revolution was acquired and had a year DATE . I had a little time to dabble. My jam was really trying to talk about outrageous topics. You know, Humbling other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. You know, it's like call your mom. It's really scary if you're a DJ and no one's calling inside. I I made it really controversial. I have people come on and debate interesting topics. If you could have dinner with Steve Jobs PERSON or Walt Disney. Who would you pick? Both. I guess I would have to slightly lean Disney just because he was not just the usher of the innovation but actually was kinda part of the some of the innovation but I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for your 20s. Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE ? Life is short It's such a valuable commodity. What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the word balance. I would say can I Make my roadblocks job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job is a CEO? Every CEO job is different. Like I like doing it. So can I figure out what my role is? You mentioned your co-found Eric Castle PERSON . Yeah. Earlier who died Of cancer. Yeah. 2013 DATE . If he was here today DATE , what do you think he would think of the roadblocks? That roadblocks has become. Wow I think he'd be It's a good question. Yeah. Like, I think he would you know, his both of his sons have worked at the company a bit. So yeah, I think he'd be very funny. He's just such a brilliant partner. Yeah And he he also set the standard for taking the long view
Hey I get this no way. You're pretty fun to listen to. Style like what was your GM ORG was I would say starting in college when I would have insomnia at 2 AM TIME I would turn on talk radio and you know all those famous KGO ORG people Bill Wattenberg PERSON all that just listen to the people calling in So I after acknowledge revolution was acquired and had a year DATE . I had a little time to dabble. My jam was really trying to talk about outrageous topics. You know, Bling GPE , other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. You know, it's like call your mom. It's really scary if you're a DJ and no one's calling inside. I I made it really controversial. I have people come on and debate interesting If you could have dinner with Steve Jobs PERSON or Walt Disney Who would you pick? Both. I guess I would have to slightly lean Disney just because he was not just the usher of the innovation but actually was kinda part of the some of the innovation but I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for your 20s. Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE ? Life is short. It's such a valuable commodity. What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the word balance. I would say can I Make my roadblocks job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job is to CEO? Every CEO job is different. Like I like doing it. So, can I figure out what my role is? You mentioned your co-founder, Eric Castle PERSON . Yeah. Earlier who Tragically of cancer. Yeah. 2013 DATE . If he was here today DATE , what do you think he would think of the roadblocks? That roadblocks has become. Wow I think he'd be It's a good question. Yeah. Like I think he would you know, his both of his sons have worked at the company a bit. So yeah, I think he'd be very He's just such a brilliant partner. Yeah. And he he also set the standard for taking the long view on how we engineer things. A lot of the Robots NORP are still You know, his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So, in 5 years DATE , will the metaverse exist? In in the form that you imagine or is it take us is it gonna Much longer like what's the time horizon? Well, it's really interesting, right? Cuz we're right in the middle of it right now. In a sense with 50 1 million CARDINAL people every day on our platform. Yeah. It's already here. And at the same time Ultimately gonna be possible could be 510 CARDINAL or 20 years DATE , out. So, it's it's all the anniversary really has existence since Online dial up muds. Really? TwoD. Very simple. Text. You can call that the Mediverse PERSON . It's existed in multiplayer gaming. World of Warcraft ORG , Exist now with more people and in 10 or 20 years DATE it'll exist photo realistically with 50 1000 CARDINAL people Have so much passion Job. Roblox your final stop on your journey. Finals but I think there's a lot of time ahead of me here. Dave Bazooki PERSON over a blocks. Thank you so much.
Controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. Yeah. You know, it's like I call your mom. It's really scary if you're a DJ and no one's calling inside I I made it really controversial I have people come on and debate interesting If you could have dinner with Steve Jobs PERSON or Walt Disney Would you pick? You can't pick both. I guess I would have to slightly lean Disney just because he was not just the usher of the innovation but actually was kinda part of the some of But I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for your 20s. Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE . Life is short It's such a valuable commodity. What you do, your friends, your time, your family is so important. So how do you define work life integration? I don't like the word balance. I would say can I Make my roadblocks job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job is a CEO? Every CEO job is different. Like I like doing it. So, can I figure out what my role is? You mentioned your co-found Eric Castle PERSON . Yeah. Earlier who died Of cancer. Yeah. 2013 DATE . If he was here today DATE , what do you think he would think of the roadblocks? That roadblocks has become. Wow I think he'd be It's a good question. Yeah. Like I think he would you know, his both of his sons have worked at the company a bit. So yeah, I think he'd be very excited. Here's just such a brilliant partner. Yeah And he he also set the standard for taking the long view on how we engineer things a lot of the technology at roadblocks is still You know his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So in 5 years DATE will the metaverse exist? In the form that you imagine or is it take does is it Much longer like what's the time horizon? Well, it's really interesting, right? Cuz we're right in the middle of it right now. In a sense with 50 1 million CARDINAL people every day on our platform. Yeah. It's already here. And at the same time, Ultimately gonna be possible, could be 510 CARDINAL or 20 years DATE , out. So, it's it's all that the really has existence since Online dial up muds really twoD very simple text you can call that the Mediverse PERSON it's existed in multiplayer gaming world of Warcraft ORG exist the exist now with more people and in 10 or 20 years DATE Exist photo realistically with 50 1000 CARDINAL people. We have so much passion for this job Blocks your final stop on your journey. What's definitely my final stuff but I think there's a lot of time ahead of me here. Dave Bazooki PERSON , over a blocks, thank you so much.
Bird to get people to call in. So it's really scary if you're a DJ and no one's calling inside. I I made it really controversial. I have people come on and debate interesting topics. If you could have dinner with Steve Jobs PERSON or Walt Disney. Who would you pick? You can't pick both. I guess I would have to slightly lean Disney just because he was not just the usher of the innovation but actually was kinda part of the some of Motivation ORG . But I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for your 20s. Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE . Life is short. Valuable commodity What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the word balance. I would say can I Make my roblox job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job as a CEO? Every CEO job is different. Like, I like doing it. So, can I figure out what my role is? You mentioned your co-fo Eric Castle PERSON . Yeah. Earlier who died Of cancer. Yeah. In 2013 DATE . Today DATE what do you think he would think of the roadblocks that Roblox has become? Wow I think he'd be proud It's a good question. Yeah. Like I think he would you know, his both of his sons have worked at the company a bit. So yeah, I think he'd be very He's just such a brilliant partner. Yeah. And he he also set the standard for taking the long view on how we engineer things. A lot of the Roadblocks is still My you know his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So in 5 years DATE will the metaverse exist? In in the form that you imagine or is it take does is Take much longer like what's the time horizon? Well, it's really interesting, right? Cuz we're right in the middle of it right now. In a sense with 50 1 million CARDINAL people every day on our platform. Yes. It's already here. And at the same time Is ultimately gonna be possible could be 510 CARDINAL or 20 years DATE , out. So, it's it's all the anniversary really has existence since Online dial up muds really too deep very simple text you could call that the verse it existed in multiplayer gaming world of war craft exist it exist now with more people and in 10 or 20 years DATE it Exist photo realistically with 50 1000 CARDINAL people. Have so much passion for this job Roblox your final stop on your journey. Well, definitely my final stuff but I think there's a lot of time ahead of me here. Dave Bazuki PERSON overall blocks. Thank you so much.
So yeah I think he'd be very excited. Seems like you you miss him. Just such a brilliant partner Any he also set the standard for taking the long view on how we engineer things a lot of the Robots ORG is still You know, his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So, in 5 years DATE , will the metaverse exist? In in the form that you imagine or is it take us is it gonna Much longer like what's the time horizon? Well, it's really interesting, right? Cuz we're right in the middle of it right now. In a sense with 50 1 million CARDINAL people every day on our platform. Yeah. It's already here. And at the same time, Is ultimately gonna be possible, could be 510 CARDINAL or 20 years DATE , out. So, it's it's all the mediverse really has existence since Online PRODUCT , dial up muds really twoD, very simple, text. You can call that the Mediverse PERSON . It's existed in multiplayer gaming, world of warcraft, Exist now with more people and in 10 or 20 years DATE it'll exist photo realistically with 50 1000 CARDINAL people you clearly have so much passion for this job Roblox your final stop on your journey. But I think there's a lot of time ahead of me here. Dave Bazooki PERSON over a blocks thank you so much. Mobility. So, we have flick to switch there and really we're going to step by step electrify everything. And what does that mean? When you think of cutting-edge technology at sea you might be thinking of stuff like this But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Katrina shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. Of all the worlds is huge Three% GPE mean that sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths.
Mobility. So, we have flick to switch there and really we're going to step by step electrify everything. And what does that mean? When you think of cutting-edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Katrina shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. About three% of all the worlds is huge to From shipping. Sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? There's an old saying in finance that cash is king but when it comes to payments the data suggests that it's no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of in-person transactions around the world Can't even send it straight from the beginning cuz his really focused on People to use electronic forms of of pain. In fact, if you look at like the US GPE for example, you basically have been moving around two CARDINAL to three% of payments from cash and check to some form of of direct electronic. Just about every single year DATE . Text China GPE today DATE at 20 1 trillion dollars MONEY . And there's another 14 1 trillion dollars MONEY worth of cash and check left. So yes we are moving towards the society. A new technology is promised to kick these trends into a higher gear. The terminal on the till of the merchant. Depending on how old one is. One is used to that. At least then and the developed world. But in that is not everywhere but Has a phone so electronic payments can end up in a super simple way that everybody's hands and for our business that's a massive growth of opportunity MasterCard ORG is already seizing that opportunity after In 2020 DATE revenues shot past pre-pandemic levels in 2021 DATE driven by a rebound consumer spending. Ways to keep the momentum going.
Mobility so we have flick to switch there and really we're going to step by step electrify everything And what does that mean Combustion PRODUCT and you'll get electrified. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Katina GPE shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods are transported sea at some point but there's a significant unseen cost to the modern era of global commerce. Output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Old saying in finance that cash is king but when it comes to payments the data suggests that's no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of in person transactions around the world. Came and send it straight from the beginning cuz his really focused on People to use electronic forms of of pain. In fact, if you look at like the US GPE for example, Basically have been moving around two CARDINAL to three% of payments from cash and check to some form of of direct electronic just about every single year DATE . Volume text China GPE today DATE at 20 1 trillion dollars MONEY . And there's another 14 1 trillion dollars MONEY worth of cash and check left to digitize So, yes, we are moving towards a cash flow society. Technology is promised to kick these trends into a higher gear. The terminal on the till of the merchant. Depending on how old one is. One is used to that. At least then and the developed world. That is not everywhere but every one has a phone. So, electronic payments can end up in a super simple way that everybody's hands and for our business, that's a massive growth of opportunity. MasterCard ORG is already seizing that opportunity Driven by a rebound consumer spending. See if Osach GPE and Mehra PERSON knows this boom is like your fade. And he's set on finding ways to keep the momentum going. Being successful in this kind of environment is to have a diversified portfolio. You gotta be enabled from an expensive standpoint. You gotta be very disciplined. As a financial officer, what I've gotta do is I've gotta make sure that we are investing in those resources Which are currently in demand from a customer standpoint but at the same time not losing sign of the long term. CEO Michael Mebach PERSON counts on Mayrodge ORG do more than just oversee the ballot sheet. The top line for me is Visor PERSON and confident. Conciliary yes he's quite happy pushing back and saying by his
Mobility. So, we have flick to switch there and really we're going to step by step. Electrify everything. And what does that mean? When you think of cutting edge technology at sea You might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. From Tina shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. From shipping. Certainly not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? There's an old saying in finance that cash is king but when it comes to payments the data suggests that's no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of in-person transactions around the Hey focused on People to use electronic forms of of pain. In fact, if you look at like the US GPE for example, you basically have been moving around two CARDINAL to three% of payments from cash and check to some form of of direct electronic. Just about every single year DATE . Volume text China GPE today DATE at 20 1 trillion dollars MONEY . And there's another 14 1 trillion dollars MONEY worth of cash and check left to digitize Hey Facebook society. Technology is promised to kick these trends into a higher gear. The terminal on the till of the merchant. How depending on how old one is, one is used to that. At least then and the developed world. But it, that is not everywhere, but every one has a phone. So, electronic payments can end up in a super simple way that everybody's hands And for our business that's a massive growth of opportunity MasterCard ORG is already seizing that opportunity after In 2020 DATE revenues shot past pre-pandemic levels in 2021 DATE driven by a rebound consumer spending. See if Osach GPE and Mehra PERSON knows this boom is like it fade. And he's set on finding ways to keep the momentum going. Portfolio. Standpoint. As a finance officer, what I've gotta do is I've gotta make sure that we are investing in those resources which are currently in demand from a customer standpoint. But at the same time not losing sign of the long term. CEO Michael Mebach PERSON counts on Mayrodge ORG due more than just oversee the ballot sheet. The top line for me is Visor PERSON and confident Conciliary DATE . Over this
Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? There's an old saying in finance that cash is king but when it comes to payments the data suggests that's no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of in-person transactions around the world Payment send it straight from the beginning his his really focused on getting Want to use electronic forms of of pain. In fact, if you look at like the US GPE for example, Basically have been moving around two CARDINAL to three% of payments from cash and check to some form of of direct electronic just about every single year DATE . Volume text China GPE today DATE at 20 1 trillion dollars MONEY . And there's another 14 1 trillion dollars MONEY worth of cash and check left to digitize So yes we are moving towards a cash flow society. Technology is promised to kick these trends into a higher gear. The terminal of the merchant. Depending on how old one is. One is used to that. At least then and the developed world. That is not everywhere but every one has a phone Payments can end up in a super simple way that everybody's hands and for our business that's a massive growth of opportunity MasterCard ORG is already seizing that opportunity after In 2020 DATE revenues shot past pre-pandemic levels in 2021 DATE driven by a rebound consumer spending. See if Osach GPE and Mehra PERSON knows this boom is like your fade. And he's set on finding ways to keep the momentum going. Being successful in this kind of environment is to have a diversified portfolio. You gotta be nimble from an expense standpoint. You gotta be very disciplined. As a financial officer, what I've gotta do is I've gotta make sure that we are investing in those resources which are currently in demand from a customer standpoint. But at the same time, not losing sign CEO Michael Mebach PERSON counts on MayRuch do more than just oversee the ballot sheet. The top line for me is Visor PERSON and confident. Conciliary yes he's quite happy pushing back and saying by You know in the past it was more of a function of you know let's make sure the numbers are good let's make sure we get a great control environment let's make sure we're actually able to close the books on time let's make sure we've got all the financial elements of the business in order the job Making sure we are creating the right linkage What the purpose of the business is what the strategy of the business is Delivering on the financial returns for the company all while driving long term shareholder value. We're in the business of leading beyond the numbers. It's great that we know what the numbers are. How do we use those numbers to better drive execution of the business to accomplishment of the strategy of the company Mastercard ORG 's core business is no surprise cards. Carded products currently account for over half CARDINAL the company's revenue. The company said ambitious growth targets it as 2021 DATE investor day. Committing to expand this core and to diversify beyond it. We've been on a 6 year DATE strategy to be a multi-rail company in plain English LANGUAGE that means whichever way you pay people enable that despite the fact that card is an hour name is essentially any type of payment we have the reach so I think we're reasonably well positioned I mean you've just gotta recognize Not only where the consumers today but where they're gonna go because a lot of what we've got to do takes time to implement And is it difficult? You'll get some, you'll get it right sometimes, you'll get it wrong sometime, but hopefully you're getting it right more often than you're getting it wrong. Yeah. And you're working with through that. Forecast.
And he said on finding ways to keep the momentum going. Being successful in this kind of environment is to have a diversified portfolio. You gotta be enabled from an expensive standpoint. You gotta be very disciplined. As a financial officer, what I've gotta do is I've gotta make sure that we are investing in those resources Which are currently in demand from a customer standpoint but at the same time not losing sign of the long term. CEO Michael Mebach PERSON counts on Mayrodge ORG do more than just oversee the ballot sheet. The top line for me is Visor PERSON and confident. Conciliary. The rule of the chief financial officer is actually changed value dramatically over this 20 plus year DATE 10 year DATE that I've had. You know in the past it was more of a function of you know let's make sure the numbers are good. Let's make sure we get a great control environment. Let's make sure we're actually able to close the books on time. Let's make We've got all the financial elements of the business in order. The job of the CFO ORG in in our view in my view is a function of making sure we're creating the right linkage. What the purpose of the businesses, what the strategy of the business is, Delivering on the financial returns for the company all while driving long term shareholder family. We're in the business of leading beyond the numbers. It's great that we know what the numbers are. How do we use those numbers to better drive execution of the business to accomplishment of the strategy of the company MasterCard ORG 's core business is no surprise cards. Carded products currently account for over half CARDINAL the company's revenue. The company said ambitious growth targets it is 2021 DATE investor day. Committing to expand this core and to diversify beyond it. We've been on a 6 year DATE strategy to be a multi-rail company in plain English LANGUAGE that means whichever way you pay people enable that despite the fact that card is an hour name is essentially any type of payment we have the reach so I think we're reasonably well positioned I mean you've just gotta recognize Not only weather consumers today but where they're gonna go because a lot of what we've gotta do takes time to implement. And it's a difficult you'll get some you'll get it right sometimes you'll get it wrong sometime but hopefully you're getting it right more often than you can get wrong and you're working with through that. Forecasting preferences is complicated by an uncertain economy consumer confidence has been plunging to historic lows and recession calls are getting louder still a slowdown isn't likely to cause a crisis for Mastercard ORG and its peers. To what people often perceive I think famous as an industry it will be quite resilient in it downtown Generally speaking Even during a recession the amount that consumers spend actually does not go down it continues to grow I need to think that people are worried about more in the payments industry is kind of how does the mix of spending change? The first ORDINAL thing is that typically happens if you're going into a session Back on discretionary categories of spend they move into The non discretionary gateways are spent Pivot into food, they pivot into rent. Those kind of payments. Which are most important for them to meet. But the real still stay the same. So the real which run debit and credit are exactly the same. The technology is the same. The distribution models the same. So those those areas don't necessarily change by virtue of moving into more for debit or credit. One CARDINAL area that master card has been moving vigorously into is BtwoB ORG payments a market expected to reach 25 1 trillion dollars MONEY by the end of the decade DATE . Tremendous promise and the BWB ORG area the card business as in the the elements of the B to B space which are served by cards are doing well are they doing very well and it's in the small business space and the mid market it's in the large corporate space all of them do really well on the accounts people side I would say we're in the building And you're aware about building an open loop environment to enable payments on accounts payable rails Where is the opportunity in that space is? Different to consumer payments where there is a global standard the global standard is
Top line for me is Visor PERSON and confident. Conciliary. The rule of the chief financial officer has actually changed value dramatically over this 20 plus year DATE tenure that I've had you know in the past it was more of a function of you know let's make sure the numbers are good let's make sure we got a great control environment let's make sure we're actually able to close the books on time let's We've got all the financial elements of the business in order. The job of the CFO ORG in in our view in my view is a function of making sure we are creating the right linkage. What the purpose of the businesses, what the strategy of the business is, Delivering on the financial returns for the company all while driving long term shareholder town. We're in the business of leading beyond the numbers. It's great that we know what the numbers are. How do we use those numbers to better drive execution of the business to accomplishment of the strategy of the Mastercards NORP core business is no surprise cards carded products currently account for over half CARDINAL the company's revenue the company said ambitious growth targets it is 2021 DATE investor day DATE committing to expand this core and to diversify beyond it. Hey any type of payment we have the reach so I think we're reasonably well positioned I mean you've just gotta recognize not only where Takes time to implement And it's a difficult you'll get some you'll get it right sometimes you'll get it wrong sometime but hopefully you're getting it right more often than you can get wrong and you're working with through that. Forecasting preferences is complicated by an uncertain economy. Confidence has been plunging to historic lows and recession calls are getting louder still a slowdown isn't likely to cause a crisis for Mastercard ORG in its peers. To watch people often perceive I think famous as an industry it will be quite resilient in the downtown Generally speaking Even during a recession the amount that consumers spend actually does not go down. It continues to grow. I think the thing that people are worried about more in the payments industry is kinda how does the mix of spending change? The first ORDINAL thing is that typically happens if you're going into a recession environment is people tend to pull back on discretionary categories of spend they move into the non discretionary categories of span. Food, they're pivot into rent. Those kind of payments. Which are most important for them to meet. But the real still stay the same. So the real which run debit and credit are exactly the same the technology is the same the distribution models the same Moving into more environment. One CARDINAL area that master card has been moving vigorously into is BtwoB ORG payments a market expected to reach 25 1 trillion dollars MONEY by the end of the decade DATE we think there's tremendous promise and the BWB ORG area the card business as in the the elements of the B to B space which are By cards. Are doing well are they doing very well and it's in the small business space and the mid market it's in the large corporate space all of them do really well on the accounts payable side I would say we're in the build phase and here whereabout building and open loop environment to enable payments on accounts payable rails Where is the opportunity in that space is? Different to consumer payments where there is a global standard. The global standard is Mastercard GPE . The global standard ah card payments because that's been established. That isn't quite established yet and be And I think the more benefits we bring into the payments that are easier than just making a really complicated cross border payment I think we will find our way there and you're gonna see an explosion of creativity a lot of other companies Pursuing new opportunities takes capital Mastercard ORG has spent billions CARDINAL acquiring companies that add capacity and diversified its infrastructure. Acquisitions and partnerships have helped master card offer more value added services to their clients tap in
You're conciliary. The rule of the chief financial officer is actually changed value dramatically over this 20 plus year DATE 10 year DATE that I've had you know in the past it was more of a function of you know let's make sure the numbers are good let's make sure we got a great control environment let's make sure we're actually able to close the books on time let's We've got all the financial elements of the business in order. The job of the CFO ORG in in our view in my view is a function of making sure we are creating the right linkage What the purpose of the business is what the strategy of the business is Delivering on the financial returns for the company all while driving long term shareholder value. We're in the business of leading beyond the numbers. It's great that we know what the numbers are. How do we use those numbers to better drive execution of the business to accomplishment Strategy with the company. Mastercards core business is no surprise cards credit products currently account for over half CARDINAL the company's revenue the company said ambitious growth targets it is 2021 DATE investor day DATE committing to expand this core and to diversify beyond it. We've been on a 6 year DATE strategy to be a multi-rail company in plain English LANGUAGE that means whichever way you pay we will enable that despite the fact that card is an hour name it's essentially any type of payment we have the reach so I think we're reasonably well positioned I mean you've just gotta recognize Takes time to implement And it's a difficult you'll get some you'll get it right sometimes you'll get it wrong sometime but hopefully you're getting it right more often than you can get wrong and you're working with through that. Forecasting preferences is complicated by an uncertain economy consumer confidence has been plunging to historic lows and recession calls are getting louder still a slowdown isn't likely to cause a crisis To watch people often perceive I think famous as an industry it will be quite resilient in any downtown Generally speaking Even during a recession the amount that consumers spend actually does not go down. It continues to grow. I think the thing that people are worried about more in the payments industry is kind of how does the mix of spending change? The first ORDINAL thing that typically happens if you're going into recession environment is people tend to pull back on discretionary categories of span. They move into The non-discretionary categories are spent Food. They're pivot into rent. Those kind of payments. Which are most important for them to meet. But the real still stay the same. So the real which run debit and credit are exactly the same the technology is the same the distribution models the same So those those areas don't necessarily change by virtue of moving into more for debit or credit. One CARDINAL area that Mastercard GPE has been moving vigorously into is BtwoB ORG payments a market expected to reach 25 1 trillion dollars MONEY by the end of the decade DATE Promise PERSON and the BW area the card business as in the the elements of the B to B space which are served by cards are doing well are they doing very well and it's in the small business space and the mid market it's in the large corporate space all of them do really well on the accounts people side I would say we're in the building fees and here About building an open loop environment to enable payments on accounts payable rails. Where is the opportunity in that spaces? Different to consumer payments where there is a global standard. The global standard is MasterCard ORG . The global standard ah comp payments because that's been established That isn't quite established yet and be to be and I think the more benefits we bring into the payments that are easier than just making a really complicated cross border payment I think we'll find our way there and we're gonna see and explosion of Lot of other companies coming in and using those rails innovating on top of them. Pursuing new opportunities takes capital. Has spent billions CARDINAL acquiring companies that add capacity and diversify its infrastructure. Acquisitions and partnerships have helped master card offer more value added services to their clients tapping into a lucrative revenue stream What we call services which includes data and
Takes time to a woman Is it difficult? More often than you can you're wrong Forecasting preferences is complicated by an uncertain economy consumer confidence has been plunging to historic lows and recession calls are getting louder still a slowdown isn't likely to cause a crisis for Mastercard ORG in its peers. To watch people often perceive I think famous as an industry it will be quite resilient in downtown Generally speaking Even during a recession the amount that consumers spend actually does not go down. It continues to grow. I think the thing that people are worried about more in the payments industry is kind of how does the mix of spending change? The first ORDINAL thing that typically happens if you're going into a recession environment is people tend to pull back on discretionary gallery this man they move into the non discretionary categories of span Food PERSON , they're pivot into rent. Those kind of payments. Which are most important for them to meet. But the real still stay the same. So the real which run debit and credit are exactly the same. The technology is the same, the distribution models the same So those those areas don't necessarily change by virtue of moving into more for debit or credit in the moment. One CARDINAL area that master card has been moving vigorously into is BtwoB ORG payments. A market expected to reach 25 1 trillion dollars MONEY by the end of the decade DATE . Promise and the BW area the card business as in the the elements of the B to B space which are served by cards. Are doing well? Are they doing very well? And it's in the small business space and the mid market. It's in the large corporate space. All of them do really well. On the accounts people side, I would say we're in the build fees. And here About building an open loop environment to enable payments on accounts payable rails Where is the opportunity in that space is? Different to consumer payments where there is a global standard. The global standard is MasterCard ORG . The global standard ah card payments because that's been established. That isn't quite established yet and And I think the more benefits we bring into the payments that are easier than just making a really complicated cross border payment I think we will find our way there and we're gonna see and explosion of creativity a lot of other companies Innovating GPE on top of Pursuing new opportunities takes capital Has spent billions CARDINAL acquiring companies that add capacity and diversify its infrastructure. Acquisitions and partnerships have helped master card offer more value added services to their clients tapping into a lucrative revenue stream. What we call services which includes data insights consulting manage services loyalty and our fraud capabilities is roughly 35% PERCENT of the revenues of this company Wow. Yeah. So, it's not insignificant. So, often times people think miles to card and think card. Very important but there's a very different part of Mexico GPE as well. From a balanced sheep perspective, MasterCard ORG has maintained a healthy leverage ratio even as it's put more resources into acquisitions and taken on more debt given the company of flexibility to continue investing. We don't go in and say, well, right now, valuations are lower than they were a year ago DATE . Let's Buy something. That is that is an opportunistic approach. It doesn't work for us. For me, it always starts. What are we trying to accomplish from a strategy standpoint? What are inherent capable of these we as a company have? What are the gaps in our capabilities to meet that strategy? And then follows gaps is the best to build. Or partner. We're out there and we're trying to find a right companies together and it's gonna make sure that we have a clear view on short and long-term synergies and so forth. And then we both talked to shareholders and to investors to explain what we're doing and why we're doing it and why it's good. Shareholders have reason to appreciate MasterCard ORG 's capital allocation strategy. It's included annual DATE share buybacks insteadly increased dividends. How do you prioritize the amount of money that you put toward innovation and toward building out different businesses versus share buybacks and dividends because master card is traditionally had rob Program in rewarding shareholders. Right. First ORDINAL call of capital is towards growth of the business After we have done that it's about making sure we're being good towards the capital and returning excess cash to shareholders with a bias towards share buybacks. And then once
The college people rails Where is the opportunity in that space is Different ORG to consumer payments where there is a global standard. The global standard is MasterCard ORG . The global standard ah card payments because that's been established. That isn't quite established yet and B to B. And I think the more benefits we bring into the payments Are easier than just making a really complicated cross border payment. I think we will find our way there and we're gonna see and explosion of creativity. A lot of other companies coming in and using those rails innovating on top of them. Pursuing new opportunities takes capital. MasterCard ORG has spent billions CARDINAL acquiring companies that add capacity and diversified its infrastructure. Acquisitions and partnerships have helped mastercard offer more value added services to their clients tapping into a lucrative revenue stream. What we call services which includes data insights consulting manage services loyalty and our fraud capabilities is roughly 35% PERCENT of the revenues of this company. Wow. Yeah. So, it's not insignificant. So, often times people think miles to cart and think god. Very important but there's a very different part of massacre as well. From a balance sheep perspective, MasterCard ORG has maintained a healthy leverage ratio even as it's put more resources into acquisitions and taken on more debt given the company of flexibility to continue investing. We don't go in and say, well, right now, evaluations are lower than they were a year ago DATE . Let's Doesn't work for us. For me, it always starts. What are we trying to accomplish from a strategy standpoint What are inherent capable these we as a company have what are the gaps in our own capabilities to meet that strategy and then follow those gaps is the best to build Or partner. We're out there and we're trying to find the right companies together and it's gonna make sure that we have a clear view on short and long-term synergies and so forth. And to investors to explain what we're doing and why we're doing it and why it's good. Shareholders have reason to appreciate MasterCard ORG 's capital allocation strategy. It's included annual DATE share buybacks and steadily increased dividends. How do you prioritize the amount of money that you put toward innovation and toward building out different businesses versus share buybacks and dividends because master card is traditionally had rob Program in rewarding shareholders. Right. First ORDINAL call of capital is towards growth of the business Capital and returning excess cash to shareholders with a bias to a share buybacks. And then once you start to come to say I have dealt with my strategic priorities I either have invested my organic growth or in acquisitions then access cash we will return back Generally with a preference for buybacks over dividend Gives a small flexibility but that's been a good model for us. It's been working well and well received by the market. Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not Particularly on the small ticket items. And later how master Cryptocurrencies ORG . In the crypto world we play the role ah as an on ram. This is Bloomberg PERSON . Markets are preparing to close but the day is not over yet. No. You need top analyst to bring you exclusive global insight into cross asset markets. Bitcoin. It's gonna be short term. Such a mirror joint master card is group executive in corporate treasure in 2010 DATE . Over the next decade DATE , he took on several different roles before being appointed chief financial officer in 2019 DATE . That's a very different path than the one he started out on. Hey went to school there I went undergrad there I went to the family business there it's a textile business which my grandfather started and my dad Michael PERSON took over and then my brother and I got into eh
Inquiring companies that add capacity and diversified infrastructure. Acquisitions in partnerships have help master card offer more value added services to their clients tapping into a lucrative revenue stream What we call services which includes data insights consulting manage services loyalty and our fraud capabilities is roughly 35% PERCENT of the revenues of this company. Wow. Yeah. So, it's not insignificant. So, often times people think miles to card and think card. Very important but there's a very different part of massacre as well. From a balance sheep perspective, Mastercard ORG has maintained a healthy leverage ratio even as it's put more resources into acquisitions and taken on more debt given the company of flexibility to continue investing. We don't go in and say, well, right now evaluations are lower than they were a year ago DATE . Let's go Something. That is, that is an opportunistic approach. It doesn't work for us. For me, it always starts. What are we trying to accomplish from a strategy standpoint? What are inherent capabilities we as a company have? What are the gaps in our capabilities to meet that strategy? And then follows gaps Is it best to build Or partner. And then we're out there and we're trying to find a right companies together. It's gonna make sure that we have a clear view on short and long term synergies and so forth. And then we both talk to shareholders and to investors to explain what we're doing and why we're doing it and why it's good. Shareholders have reason to appreciate Mastercard ORG 's capital allocation strategy. It's included annual DATE share buy Insteadly increased dividends. How do you prioritize the amount of money that you put toward innovation and toward building out different businesses versus share buybacks and dividends because master card is traditionally had robust program in rewarding shareholders. Right. As towards growth of the business. Done that It's about making sure we're being good stewards of capital and returning excess cash to shareholders with a bias to a share buybacks. And then once you start to come to say I have dealt with my strategic priorities I either have invested my organic growth or in acquisitions then access cash we will return back Leave with a preference for buybacks over dividend because it gives a small flexibility but that's been a good model for us. It's been working well and it's been well received by the market. Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not Well it's really made a difference on has been in terms of how it's driving a shift from cash to the electronic payment particularly on the small ticket items and later how mastercard Cryptocurrencies ORG . In the crypto world we play the role as an on ram. This is Bloomberg Markets ORG are preparing to close but the day is not over yet. 45% PERCENT . Upgraded today DATE to overweight. You need top analysts to bring you exclusive global insight into cross asset markets. Hey it's gonna be short term. Such a mirror joined Mastercard PERSON as group executive in corporate treasure in 2010 DATE . Over the next decade DATE , he took on several different roles before being appointed chief financial officer in 2019 DATE . That's a very different path than the one he started out on. Hey grew up in India GPE I went to school there went undergrad there I worked with the family business there it's a textile business which my grandfather started and my dad took over and then my brother and I got into and hey what put them for three and a half years DATE then I came here for business school The moment of truth came on graduation day. Hey, dad. Got on the phone. I'm looking forward to having you back home. My brother was older than I am. Went to business school as well and went back home and worked with my dad. Got on the phone. Congratulations. What are you gonna do with your life? Yup that's what dad wants you to do. What do you wanna do? And then
In partnerships have helped MasterCard ORG offer more value added services to their clients tapping into a lucrative revenue stream. What we call services which includes data insights consulting manic services loyalty and our fraud capabilities is roughly 35% PERCENT of the revenues of this company. Wow. Yeah. So, it's not insignificant. So, often times people think mass required and think card. Very important but there's a very different part of massacre as well. From a balance sheep perspective, Mastercard ORG has maintained a healthy leverage ratio even as it's put more resources into acquisitions and taken on more debt given the company of flexibility to continue investing. We don't go in and say, well, right now, valuations are lower than they were a year ago DATE . Let's go Something. That is, that is an opportunistic approach. It doesn't work for us. For me, it always starts. What are we trying to accomplish from a strategy standpoint? What are inherent capabilities we as a company have? What are the gaps in our neuron capabilities to meet that strategy? And then photos gaps Is it best to build Or partner and then we're out there and we're trying to find the right companies together and it's gonna make sure that we have a clear view on short and long-term synergies and so forth. And to investors to explain what we're doing and why we're doing it and why it's good. Shareholders have reason to appreciate MasterCard ORG 's capital allocation strategy It's included annual DATE share buybacks and steadily increased dividends. How do you prioritize the amount of money that you put toward innovation and toward building out different businesses versus your buybacks and dividends because master card is traditionally had robust program in rewarding shareholders. Right. First ORDINAL call of capital is towards growth of the business. After we have done that, it's about making sure we're being good students And returning access cash to shareholders with a bias to a share buybacks. And then once you start to come to say I have dealt with my strategic priorities I either have invested my organic growth or in acquisitions then access cash we will return back Preference ORG for buybacks over dividend because it gives a small flexibility but that's been a good model for us. It's been working well. It's been well received by the market. Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not What it's really made a difference on has been in terms of how it's driving a shift from cash to that 24 CARDINAL payment. Particularly on the small ticket items. And later how MasterCard Cryptocurrencies ORG In the crypto world we play the role as an on ram. This is Bloomberg PERSON . Markets are preparing to close but the day is not over yet. Lot of volatility right now. Upgra PERSON You need top analyst to bring you exclusive global Hey Hey portal is it gonna be short term Such a mirror joint mastercard is group executive in corporate treasure in 2010 DATE . Over the next decade DATE , he took on several different roles before being appointed chief financial officer in 2019 DATE . That's a very different path than the one he started out on. Hey grew up in India GPE hey went to school there went undergrad there I worked with the family business there it's a textile business which my grandfather started and my dad Malco GPE took over and then my brother and I got into and hey what put them for three and a half years DATE then I came here for business school The moment of truth came on graduation day. My dad got on the phone. I'm looking forward to having you back home. My brother was older than I am. He went to business school as well and went back home and worked with my dad. Got on the phone. What are you gonna do with your life? And I'm going, well, why are we having this discussion? Dad PERSON wants me to come home and work with the family business. He's like, yup, that's what dad wants you to do. What do you wanna do? Hey give him a chance I'd love to work in finance in in the UK GPE
It's about making sure we're being good stewards of capital and returning excess cash to shareholders with a bias to a share buybacks. And then once you start to come to say I have dealt with my strategic priorities I either have invested in my organic Or an acquisitions then access cash we will return back Preference ORG for buybacks over dividend because it gives a small flexibility but dad's been a good model for us. It's been working well and well received by the market. Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not Particularly on the small ticket items and later how MasterCard Cryptocurrencies ORG . In the crypto world we play the role as an on ram. This is Bloomberg Markets ORG are preparing to close but the day is not over yet. Lot of volatility right now. You need top analysts to bring you exclusive global insight into cross asset markets. Bitcoin ain't paying along today DATE . It's gonna be short term. Close weekdays DATE on Bloomberg PERSON . Such a mirror joint mastercard is group executive in corporate treasure in 2010 DATE . Over the next decade DATE , he took on several different roles before being appointed chief financial officer in 2019 DATE . That's a very different path than the one he started out on. Hey grew up in India GPE I went to school there I went undergrad there I went to the family business there it's a textile business which my grandfather started and my dad Malco GPE took over and then my brother and I got into and hey what put them for three and a half years DATE then I came here for business school The moment of truth came on graduation day. My dad got on the phone I'm looking forward to having you back home. My brother was older than I am. Went to business school as well and went back home and worked with my dad. Got on the phone congratulated me and said Gon ORG na do with your life. And I'm going, well, why are we having this discussion? Dad PERSON wants me to come home and work with the family business. He's like, yup, that's what dad wants you to do. What do you wanna do? Hey give him a chance I'd love to work in finance in in the US GPE General motors where he worked for over a decade Then it was on to the energy industry it has corpo Before finding his way to Mastercard GPE . Today DATE , my dad couldn't be prouder of the fact that you know, I chose the path I did. Obviously, he misses the fact that we're not there as a family but that's just what I like, right? We all gotta grow in Blossman Groom PERSON . Accepted the beginning. It took him all 30 minutes TIME to get there. When Mara PERSON gets together with his team and the employee cafe and Mastercard PERSON 's campus It's clear that he said his element. Well, more important, more fun stuff. What's the plan for the weekend DATE ? And of course, the cafe provides a demonstration of the tap and co technology that's changed the game for payment companies. Could I just go to regular coffee with milk please? Of this. Yeah. Okay that would be 571 CARDINAL . You got it. We're gonna make this work. There we go. I think contactless is a very powerful catalyst for accelerating gastrobansion. Last 2 years DATE but we have seen in the US GPE is god penetration Annually has doubled What was the average Contributed ORG to this girl as well It's made of change. It's really made a difference. What it's really made a difference on has been in terms of how it's driving a shift from cash to electronic payment. Particularly on the small ticket items. Which is really really important. Cos at the end of the day DATE our model is as much as possible.
Three and a half years DATE then I came here for business school The moment of truth came on graduation day. My dad got on the phone. I'm looking forward to having you back home. My brother was older than I am. Went to business school as well and went back home and worked with my dad. Got on the phone. Congratulated me and said, Susan PERSON , what are you gonna do with your life? And I'm going, well, why are we having this discussion? Dad PERSON wants me to come home and look at the family business. He's like, yep, that's what dad wants you to do. What do you wanna do? And then it really got me thinking, and I said, hey, give him a chance. I'd love to work in finance in in the US GPE . Mary took the chance, even though it took him 6 months DATE to land his first ORDINAL job. At General Motors ORG , where he worked for over a decade. Then it was on to the energy industry it has Before finding his way to Mastercard GPE . Today DATE my dad couldn't be prouder of the fact that you know I chose the path I did Obviously he misses the fact that we're not there as a family but that's just part of life right we all gotta grow in Blossman GPE groom Accepted at the beginning. Campus it's clear that he said his element More fun stuff. What's the plan for the weekend DATE ? And of course the cafe provides a demonstration of the tap and go technology that's changed the game for payment companies Could I just go to regular coffee at home please? Yeah. Okay, that would be 571 CARDINAL . You got it. We're gonna leave this work. There we go. I think contactless is a very powerful catalyst for accelerating In the last 2 years DATE what we have seen in the US GPE is god penetration can go through annually has doubled What was the average 5 years DATE the pandemic was one of the reasons we take it one touch cash there's a lot of e-commerce purchases the contact list definitely contributed to this It's made of change. It's really made a difference. What it's really made a difference on has been in terms of how it's driving a shift from cash to electronic payment. Particularly on the small ticket items. Which is really really important. Cos at the end of the day DATE our model is as much about converting the dollar value of the spend as it is about the number of transactions Get over on Netflix GPE . Transaction Which we can deliver services and that's really important. Master card introduced PayPass ORG it's first ORDINAL contact list payment system in 2002 DATE but the technology took some time to gain traction I would say we first invested in this many, many, many, many years ago DATE . The adoption rate on this in the early part. Even in markets like the UK GPE , Canada GPE , Australia GPE , was fairly slow in the early part. The inflection point of when It really started to hit its right was when it was used in the transit vertical. So what we figured is let's get on the transit systems around the globe. Enable for contact list technology. That will create muscle memory for the consumer who will like the experience and transit and we'll use it elsewhere. How do you judge the revenue proposition for Mastercard with innovation like that and the adoption and the pace of it? Look, I mean, for us, we're agnostic as the weather. Somebody's using the chip technology or the contact list technology You know, using the mag stripe which was the old way of doing business. We on revenues which are quite similar across both of those. The revenue potential and upsite for us comes from the fact that now more spend is being done on card based on supreme and then was being done in the past. So, we're converting that cash over to electronic officer payment. Which is where the environmental revenue comes from. If contact list payments is the current revolution sweeping the payments industry what's the next one I think Smile ORG . Biometrics I think that's where it's gonna go and I think we've reached that point in people are sick of too many passwords people are sick of And stuff and there's also too many wallets and other ideas and stuff that is around. So why don't you just you everybody has a smile. So just play with your smile. There you go.
And I'm going well why are we having this discussion dad wants me to come home and look at the family business he's like yep that's what dad wants you to do. What do you wanna do? Hey give him a chance I'd love to work in finance in in the US GPE General motors where he worked for over a decade. Then it was on to the energy industry it has cor Before finding his way to Mastercard GPE . Today DATE , my dad couldn't be prouder of the fact that you know, I chose the path I did. Obviously, he misses the fact that we're not there as a family but that's just part of life, right? We all gotta grow in Blossman Groom PERSON . Except at the beginning. It took him all 30 minutes TIME to get there. When Mera PERSON gets together with his team and the employee cafe and Mastercards PERSON campus It's clear that these it is element. Well, more important, more fun stuff. What's the plan for the weekend DATE ? And of course the cafe provides a demonstration of the tap and go technology that's changed the game for payment companies Could i just go to regular coffee with help please Of this. Yeah. Okay that would be 571 CARDINAL . You got it. We're gonna leave this work. There we go. I think contactless is a very powerful catalyst for accelerating gastrobansion in the last 2 years DATE but we have seen in the US GPE is god penetration Annually has doubled What was the average Definitely contributed to this It's made of change. It's really made a difference. What it's really made a difference on has been in terms of how it's driving a shift from cash to electronic payment. Particularly on the small ticket items. Which is really really important. Cos at the end of the day DATE our model is as much about converting the dollar value of the spend as it is about the number of transactions we can We're on Netflix GPE . Transaction On which we can deliver services and that's really important MasterCard ORG introduced PayPal ORG it's first ORDINAL contact list payment system in 2002 DATE but the technology took some time to gain traction I would say we first invested in this many many many many years ago. The adoption rate on this in the early part. Even in markets like the UK GPE , Canada GPE , Australia GPE , was fairly slow in the early part. The inflection point of when It really started to hit it straight. Was when it was used in the transit vertical. So what we figured is let's get on the transit systems around the globe. Enable for contactless technology. That will create muscle memory for the consumer who will like the experience and transit that we're using elsewhere. How do you judge the revenue proposition for Mastercard with innovation like that and the adoption and the pace of it? Look, I mean, for us, we're agnostic as the weather. Somebody's using the chip technology or the contactless technology or you know, using the mag stripe which was the old way of doing business. We on revenues which are quite similar The revenue potential and upside for us comes from the fact that now more spend is being done on card based on payment than was being done in the past so we're converting that cash over the electronic box of payment which is where the information comes from. If contact list payments is the current revolution sweeping the payments industry what's the next one I think Smile ORG . Biometrics I think that's where it's gonna go. And I think we've reached that point of people are sick of too many passwords. People are sick of typing in stuff and there's also too many wallets and other ideas and stuff that is around. So why don't you just use everybody has a smile? So just play with your smile. There you go. How much are you investing in that? How quickly do you see that becoming the next tap and go? Yeah. So look, I I think this is gonna take a while. These things have an adoption code which typically is fairly flattened the early part and then you start to see some level of stevens. Master Next breakthrough may be born in one of its global tech hubs. The company has opened innovation centers in Australia GPE , India GPE , Europe LOC , Canada GPE , and the United States GPE . These are spaces where we draw in customers where we draw the local community. We have them in big cities where the latest technology is the players are all around us. In New York City GPE , it's in
That's what Dad wants you to do. What do you wanna do? Hey give him a chance I'd love to work in finance in in the US GPE General motors where he worked for over a decade Then it was on to the energy industry it has corpo Before finding his way to Mastercard GPE . Today DATE , my dad couldn't be prouder of the fact that you know, I chose the path I did. Obviously, he misses the fact that we're not there as a family but that's just part of life, right? We all gotta grow in Blossom and Groom PERSON . Accepted at the beginning. It took him all 30 minutes TIME to get there When Mara gets together with his team and the employee cafe and Mastercard PERSON 's campus It's clear that he said his element. Well, more important, more fun stuff. What's the plan for the weekend DATE ? And of course the cafe provides a demonstration of the tap and co technology that's changed the game for payment companies Could I just go to regular coffee with help please? Of this. Yeah. Okay that will be 571 CARDINAL . You got it. Gonna make this work. There we go. I think contactless is a very powerful catalyst for accelerating conversion in the last 2 years DATE what we have seen in the US GPE is god penetration provoke annually DATE has doubled What says what was the average the price 5 years DATE the pandemic was one of the reasons be taken want to touch cash there's a lot of e-commerce purchases the contact list definitely contributed to this It's made of change. It's really made a difference. What it's really made a difference on has been in terms of how it's driving a shift from cash to electronic payment particularly on the small ticket items. Which is really really important. Cos at the end of the day DATE our model is as much about converting the dollar value to spend as it is about the number of transactions we can We're on Network ORG . Transaction Which we can deliver services and that's really important. MasterCard ORG introduced PayPass ORG it's first ORDINAL contact list payment system in 2002 DATE but the technology took some time to gain traction I would say we post invested in this many many many many years ago the adoption rate on this in the early part even in Marcus LOC like the UK GPE Canada GPE Australia GPE was fairly slow in the early part the inflection point of when It really started to hit it straight. Was when it was used in the transit vertical. So what we figured is let's get on the transit systems around the globe. Enable for contactless technology. That will create muscle memory for the consumer who will like the experience and transit elsewhere. How do you judge the revenue proposition for Mastercard with innovation like that and the adoption and the pace of it? Look, I mean, for us, we're agnostic as the weather. Somebody's using the chip technology or the contactless technology or you know, using the max PERSON stripe which was the old way of doing business. We on revenues which are quite Across both of those. The revenue potential and upside for us comes from the fact that now more spend is being done on card based on supreme and then was being done in the past. So we're converting that cash over to electronic officer payment. Which is where the revenue comes from If contact list payments is the current revolution sweeping the payments industry what's the next one? I think You smile. Biometrics I think that's where it's gonna go. I think we've reached that point of people are sick of too many passwords. People are sick of typing in stuff and there's also too many wallets and other ideas and stuff that is around. So why don't you just you everybody has a smile so just play with your smile there you go how much you investing in that how quickly do you see that becoming the next tap and go yeah so look I I think this is gonna take a while these things have an adoption code which typically is fairly flattened the early part and then you start to see some levels deep in this Master The company has opened innovation centers in Australia GPE , India GPE , Europe LOC , Canada GPE , and the United States GPE . Spaces where we draw in customers where we draw the local community. We have them in big cities where the latest technology is the players are all around us. In New York City GPE , it's in tech alley and everybody in the tech industries around us. It's a point where people wanna
Particularly on the small ticket items. Which is really really important. Cos at the end of the day DATE our model is as much about converting the dollar value of the spend as it is about the number of transactions we can get over And even though it happens to be a $ two MONEY transaction or transaction or transaction on which we make revenue. On which we can deliver services and that's really important. MasterCard ORG introduced PayPass ORG it's first ORDINAL contact list payment system in 2002 DATE but the technology took some time to gain traction Many years ago DATE the adoption rate on this in the early part even in Marcus LOC like the UK GPE Canada GPE Australia GPE was fairly slow in the early part the inflection point of when It really started to go ahead it's right was when it was used in the transit vertical so what we figured is let's get on the transit systems around the globe enable for contactless technology that will create muscle memory for the consumer who will like the experience and transit that we're using elsewhere How do you judge the revenue proposition for Mastercard With renovation like that and the adoption and the pace of it Which was the old way of doing business. We on revenues which are quite similar across both of those. The revenue potential and upsite for us comes from If contact list payments is the current revolution sweeping the payments industry what's the next one? I think Hey with your smile. So biometrics I think that's where it's gonna go. I think we've reached that point of people are sick of too many passwords. People are sick of typing in stuff and there's also too many wallets and other ideas and stuff that is around. So why don't you just use everybody has a smile so just play with your smile there you go how much are you investing in that how quickly do you see that becoming the next tap and go yeah so look I I think this is gonna take a while these things haven't adoption go which typically is fairly flattened the early part and then you start to see some level of steeping Mastercard PERSON 's next breakthrough may The company has opened innovation centers in Australia GPE , India GPE , Europe LOC , Canada GPE , and United States GPE . These are Spaces ORG where we draw in customers where we draw the local community. We have a big cities where the latest technology is the players are all around us. In New York City GPE , it's in tech alley and everybody in the tech industries around us. It's a point where people wanna work and be at Best talent and we go and this brings us back to the CFO ORG . We go and look at our vitality index. So, how are the revenues looking? What is generated from new products? What do we see? Is there real momentum? Is there real growth? And if you overlay that and link that back to our tech hubs in these regions where we have them clearly that is what driving what is driving our new solutions for an investment standpoint we try and make sure we've got our foot in the door and all of these new and emerging technologies cuz what we don't wanna do is play favourites with one CARDINAL versus the other we We wanna be at the inflection point for them to write on. In your Can you act like bond James Bond PERSON what are the queue movies and like the laboratories you walk in and they you know you sort of face off and clear the system and they serve to this Who can do that? No that's not me. Coming up how MasterCard ORG has embraced the brave new world of cryptocurrency with all its ups and downs. Principles we think we're in really good And such an mirror tells me what advice he'd offer a CFO ORG just starting out in the job. I think it's important to stay calm. It's a board to recognize that change is going to happen. You can't fight change. This is bloomberg. Imagine simply climbing a cable into space. The concept is known as the space elevator
And there's also too many wallets and other ideas and stuff that is around. So why don't you just you everybody has a smile. So just play with your smile. There you go. How much are you investing in that? How quickly do you see that becoming the next tap and go? Yeah. So look I think this is gonna take a while. These things have an adoption code which typically is fairly flattened the only part and then you start to see some levels deep in this. Master The company has opened innovation centers in Australia GPE , India GPE , Europe LOC , Canada GPE , and the United States GPE . These are spaces where we draw in customers where we draw the local community. We have them in big cities where the latest technology is the players are all around us. In New York City GPE , it's in tech alley and everybody in the tech industry is around us. It's a point where people wanna work and be attract And we go and this brings us back to the CFO ORG . We go and look at our vitality index. So, how are the revenues looking? What is generated from new products? What do we see? Is there real momentum? Is there real growth? And if you overlay that and link that back to our tech hubs in these regions where we have them clearly that is what driving what is driving our new solutions. Form an investment standpoint. We try and make sure we've got our foot on the door and all of these new and emerging technologies. Cuz what we don't do is play favorites with one CARDINAL versus the other. Make sure we're investing just appropriate amounts of money to have skin in the game to know that if this thing has got legs to it we wanna be at the inflection point for them to ride out In your tech hubs can you act like bond James Bond PERSON what are the queue movies and like the laboratories you walk in and they you know you sort of face off and clear the system and they drove to this And I'm not I'm not one of them. No, that's not me. Coming up how mastercard has embraced the brave new world of cryptocurrency with all its ups and downs. We think we're in really good And such an Mara tells me what advice he'd offer a CFO ORG just starting out in the job. To stay calm. It's a border to recognize that change is going to happen. You can't fight change. This is blooper Imagine ORG simply climbing a cable into space. The concept is known as the space elevator Not only could it significantly change how we leave planet earth But it could also completely transform humanities relationship with space. And there are scientists who think we could have already built it We have the material. We have the technology. We have the lasers. We have the climbers. We have all of them Hey private entity wants to build it Or a government They can build it. It'll change society. We have no clue how Over the next 50 to 200 years DATE . It'll be completely different. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now Everyday English LANGUAGE in the command line. Compare financials Find people analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Are we in some sort of calculation fears moment people are talking about that all day DATE yesterday Like many of its counterparts and the payments and financial services industry Artist developed products in partnerships that bring cryptocurrencies into its networks. From the payments and payment system perspective the the Players and and and members that make up.
Spaces where we draw in customers where we draw the local community. We have them in big cities where the latest technology is the players are all around us. In New York City GPE , it's in tech alley and everybody in the tech industries around us. It's a point where people wanna work and be attract the best talent and we go and this brings us So how are the revenues looking what is generated from new products what do we see is there real momentum is there real growth And if you overlay that and link that back to our tech hubs in these regions where we have them clearly that is what driving what is driving our new solutions for an investment standpoint we try and make sure we've got our foot in the door and all of these new and emerging technologies cuz what we don't wanna do is play favorites with one CARDINAL versus the other we In your tech Can you act like bond James Bond PERSON what are the queue movies and like the laboratories you walk in and they you know you sort of face off and clear the system and they prove to this Who can do that? I'm not one of them. No, you? No, that's not me. Coming up how mastercard has embraced the brave new world of cryptocurrency with all its ups and downs. We think we're in really good And such an mirror tells me what advice he'd offer a CFO ORG just starting out in the job. I think it's important to stay calm. It's a board to recognize that change is going to happen. You can't fight change. This is bloomer. Imagine simply climbing a cable into space. The concept is known as the space elevator. Not only could it significantly change how we leave planet earth But it could also completely transform humanities relationship with space. And there are scientists who think we could have already built it We have the material. We have the technology. We have the lasers. We have the climbers. We have all of them. Private entity wants to build it. Or a government Colonizing in the space how really spreading on his face oh really change our society over the next 50 to 200 years DATE It'll be completely different. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials. Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Let's just be honest we've had sort of a shift in are we in some sort of sipulation fears moment people are talking about that all day DATE yesterday Like many of its counterparts and the payments and financial services industry MasterCard ORG has developed products and partnerships that bring cryptocurrencies into its networks. Payments and payment system perspective. The the Players and and members that make up that ecosystem are really agnostic. To them, crypto is just another current literally. Just another asset. At this point, It's better to invest Lean GPE in and a partner with some of these companies For future revenue growth made versus kind of sitting on the sidelines. Crypto ORG is a term that encompasses a number of different projects including
All around us. In New York City GPE , it's in tech alley and everybody in the tech industry is around us. It's a point where people wanna work and be attract the best talent and we go and this brings us back to the CFO ORG . We go and look at our vitality index. So, how are the Our revenue is looking what is generated from new products. What do we see? Is there real momentum? Is there a real growth? And if you overlay that and link that back to our tech hubs in these regions where we have them clearly that is what driving what is driving our new solutions for an investment standpoint we try and make sure we've got our foot on the door and all of these new and emerging technologies cuz what we don't wanna do is play favourites with one CARDINAL versus the other we Make sure we're investing just appropriate amounts of money to have skin in the game to know that if this thing has got legs to it we wanna be at the inflection point for them to write on Cubs ORG can you act like bond James Bond PERSON he wanted the queue movies and like the laboratories we walk in and they you know you sort of face off and clear the system and they serve to this Who can do that? No that's not me. Coming up how Mastercard ORG has embraced the brave new world of cryptocurrency with all its ups and downs. We think we're in really good And such an mirror tells me what advice he offers CFO ORG just starting out in the job. I think it's important to stay calm. I think it's important to recognize that change is going to happen. You can't fight change. This is bloombird. Imagine symphony climbing a cable into space. The concept is known as the space elevator. Not only could it significantly change how we leave planet earth But it could also completely transform humanities relationship with space. And there are scientists who think we could have already built it. We have the material. We have the technology. We have the lasers. We have the climbers. We have all of it. If a private entity wants to build it Or a government. Colonizing in the space how really spreading on the space will really change our society over the next 50 DATE to It'll be completely different. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Narrative. Let's just be honest. We've had sort of a shift in are we in some sort of calculation, fears, moment, people are talking about that all day DATE yesterday DATE . Like many of its counterparts and the payments and financial services industry Artist developed products and partnerships that bring cryptocurrencies into its networks. From the payments and payment system perspective the the Players and and members that make up that ecosystem are really agnostic. To them, crypto is just another current literally. Just another asset. The overall revenue contribution is still so small. It's very early but if if I'm a hard company, it's better to invest Partner with some of these companies. For future revenue growth rate versus kind of sitting on the sidelines. Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins also it did digital
Imagine simply climbing a cable into space. The concept is known as the space elevator. Not only could it significantly change how we leave planet earth But it could also completely transform humanities relationship with space. And there are scientists who think we could have already built it We have the material. We have the technology. We have the lasers. We have the climbers. We have all of them Hey He wants to build it. We have no clue how Really change our society over the next 50 to 200 years DATE . It'll be completely different. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now Everyday English LANGUAGE in the command line. Compare financials Find people. You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Are we in some sort of calculation, fears, moment, people are talking about that all day DATE yesterday DATE . Like many of its counterparts and the payments and financial services industry Artist developed products in partnerships that bring cryptocurrencies into its networks. From the payments and payment system perspective the the Players and and members that make up that ecosystem are really agnostic. To them, crypto is just another currency literally. Just another asset. Point Contribution ORG is still so small. Very early Hey partner with some of these companies for future revenue growth made versus kind of sitting on the sidelines Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins. Also, digital assets like Bitcoin ORG . He's voluntal valuations is acceptability to fraud. Have raised plenty of anxiety among investors. Mastercard ORG 's long-term plans to stay in the space. Haven't wavered. Do we like to fundamental technology in the promise that it brings to solve problems that have not been solved so if we see more revenue coming out of B to B solutions that leverage blockchain technology for example. Tokenize the bank deposits. You know, just to throw out one CARDINAL example. Across border payments, whatever it might be. In the crypto wall, we play the role as an on ramp. So, people use MasterCard ORG card products to buy crypto. Our debit included products. So, that's the on-gramp If people wanna spend money as in fear currency to buy crypto and react as the off ramp and the offer amp is when people wanna cash it We help them actually gain access to be able to use their crypto balances everywhere masterclass accepted. We engage with central banks on central bank digital currencies. We engage with governments on how He could look like how regulation could like look like We engage with the startup community and say come on in let's sit around the table in one CARDINAL of our tech hubs and we discuss what What solution actually is needed by whom and how we can bring it together. They have the greatest idea but the greatest idea, it's a path to scale. That's what we can bring. Is there a potential liability because of volatility because of how Coin ORG and certain other cryptocurrencies have been painted. Is there any liability for Mastercard GPE ? Yeah. Well, too long as we follow our principles, we think we're in really good shape. And the principles we care deeply about our Stability as instability of the currency in question Point number
Payment system perspective the the the Crypto ORG is just another current literally just another asset. At this point, Overall gravity conservationist still so small it's very early If I am a hard company it's better to invest and lean in any partner with some of these companies For future revenue growth rate versus kind of sitting on the sidelines. Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins. Also, digital assets like Bitcoin ORG . He's voluntal valuations is acceptability to fraud. Have raised plenty of anxiety among investors. Long term plans to stay in the space haven't wavered. We're not really in the crypto hype of investment investing around do we like the fundamental technology in the promise that it brings to source problems that have not been solved so if we see more revenue coming out of Be to be solutions that leverage blockchain technology for example tokenize bank deposits you know just to throw out one CARDINAL example across border payments whatever it might be in the crypto world we play the role as an on ram so people use MasterCard ORG called products to buy crypto Products so that's the on gram if people wanna spend money as in fear currency to buy crypto and react as the off ramp and the offer amp is when people wanna encash it We help them actually gain access to be able to use their crypto balances everywhere master cuts accepted. We engage with central banks on central bank digital currencies. We engage with governments on how a policy could look like, how regulation could like, look like, Engage with the startup community and say come on in let's sit around the table in one CARDINAL of our tech hubs and we discuss What solution actually is needed by whom and how we can bring it together. They have the greatest idea but the greatest idea, it's a path to scale. That's what we can bring. Is there a potential liability because of the volatility because of how And certain other cryptocurrencies have been painted. Is there any liability for Mastercard GPE ? Yeah. Well, too long as we follow our principles, we think we're in really good shape. And the principles we care deeply about our Stability as instability of the currency in question Point number two CARDINAL it must meet consumer protection requirements Me the laws of the land. And this is not new news to us. We've done this in the space for the last 50 years DATE . For everything we've been working with regulated financial institutions on. And so which is why when we got into the space the first thing we did was define principles. And we will keep abiding by those principles and what we do. Yeah I feel happy because we're in the discussion We're shaping that ecosystem And then 1 day it look like we'll be having it done in many other spaces over years of the past years DATE . Is a leader within a company that has the power and reach to shape ecosystems and he'll be making strategic and financial decisions that shape the business. I wanted to know what he sees when he looks ahead. What's the opportunity for MasterCard ORG in the next 10 years DATE that most excites you There still remains a very sizable consumer payments opportunity which we stand very well poised to actually capitalize on. This is the trend of the shift from cash to electronic forms of payment. If you think about it globally, there's still a ton QUANTITY of cash. Which remains to be electron And that that opportunity is huge The second ORDINAL pillar for me is around We have identified over the past few years DATE a sizable total addressable market in what we call new payment flows. Bucket PERSON number three CARDINAL is around services. It goes back to our Insights Analytics PERSON are broad management capabilities and everything we're doing in that space and then the last piece around you networks which is around open banking and digital light entity. What are some of the challenges for Mastercard ORG over the next 10 years DATE that keep you open night TIME ? Plugged in on what's going on from a technology innovation standpoint and making sure we're leading from the front not turning our back to it and saying we're gonna walk in the other direction. We've got to engage with people who could potentially be disintermediators competitors to let them know what value we can bring
For future revenue growth made versus kind of sitting on the sidelines. Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins. Also, digital assets like bitcoin. He's voluntal valuations is acceptability to fraud. Have raised plenty of anxiety among investors. Cars long term plans to stay in the space haven't wavered. We're not really in the crypto hype of investing and investing around her do we like the fundamental technology in the promise that it brings to Saul's problems that have not been solved so if we see more revenue coming out of Solutions that leverage blockchain technology for example. Tokenized bank deposits. You know, just to throw out one CARDINAL example. Across border payments, whatever it might be. In the crypto wall, we play the role as an on ram. So, people use MasterCard ORG called products to buy crypto. Our debit included products. So, that's the on ramp. If Wanna PERSON spend money as in fear currency to buy crypto and react as the off ramp and the offer amp is when people wanna cash it We help them actually gain access to be able to use their crypto balances everywhere masterclass accepted. We engage with central banks on central bank digital currencies. We engage with governments on how a policy could look like, how regulation could like, look like, Engage with the startup community and say come on in let's sit around the table Hubs PERSON and we discuss What solution actually is needed by whom and how we can bring it together. They have the greatest idea but the greatest idea, it's a path to scale. That's what we can bring. Is there a potential liability because of the volatility because of how And certain other cryptocurrencies have been painted. Is there any liability for Mastercard GPE ? Yeah. Well, too long as we follow our principles, we think we're in really good shape. And the principles we care deeply about our Stability as instability of the currency in question. Point number two CARDINAL it must meet consumer protection requirements. It must meet the laws of the land. And this is not new news to us. We've done this in the space for the last 50 years DATE . For everything we've been working with regulated financial institutions on. And so which is why when we got into the space the first thing Was to find principles and we will keep abiding by the principles and what we do. Happy because we're in the discussion We're shaping the ecosystem And then 1 day it look like what we have done in many other spaces over years of of the past years DATE . Mirror ORG is a leader within a company that has the power and reach to shape ecosystems and he'll be making strategic and financial decisions that shape the business. I wanted to know what he sees when he looks ahead. Most excites There's still remains a very sizable consumer payments opportunity which we stand very well poised to actually capitalize on. This is the trend of the shift from cash to electronic phones or payment. If you think about it globally, there's still a ton QUANTITY of cash. Which remains to be electron And that that opportunity is huge The second ORDINAL pillar for me is around we have identified over the past few years DATE a sizable total addressable market in what we call new payment flows bucket number three CARDINAL is around services it goes back to our insights and analytics are broad management capabilities And everything we're doing that space and then the last piece around you that works which is around open banking and digital light entity. What are some of the challenges for Mastercard ORG over the next 10 years DATE that keep you up at night TIME ? Plugged in on what's going on from a technology and innovation standpoint and making sure we're leading from the front not turning our back to it and saying we're gonna walk in the other direction We've got to engage with people who could potentially be Mediators competitors to let them know what value we can bring while they're executing on their strategy. So, that's number one CARDINAL . Number two CARDINAL is Look I mean the world is getting More into a regulatory environment where regulation regulators are playing a bigger role. Nationalism is playing a bigger role. It's important for us to continue do everything we're doing by being local. It's important to be a global company but be deemed local and that's gonna be important for us to execute on because at the end of the day DATE , sitting in my role is the CFO ORG . Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on it.
Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins. Also, digital assets like bitcoin. He's volatile valuations is acceptability to fraud. Have raised plenty of anxiety among investors. Cars long term plans to stay in the space haven't wavered. We're not really in the crypto hype of investing investing around her do we like the fundamental technology in the promise that it brings to solve problems that have not been solved so if we see more revenue coming out of B to B solutions that leverage blockchain technology for example. Tokenize the bank deposits. You know, just to throw out one CARDINAL example. Across border payments, whatever it might be. In the crypto world we play the role as an on ram so people use MasterCard ORG called products to buy crypto or debit and credit products so that's the on ramp if people wanna spend money as in fear currency to buy crypto and react as the off ramp and the offer amp is when people wanna in cash should We help them actually gain access to be able to use their crypto balances everywhere masterclass accepted. We engage with central banks on central bank digital currencies we engage with governments on how a palsy could look like how regulation could like look like Engage with the startup community and say come on in let's sit around the table And we discuss What solution actually is needed by whom and how we can bring it together. They have the greatest idea but the greatest idea, it's a path to scale. That's what we can bring. Is there a potential liability because of volatility because of how And certain other cryptocurrencies have been painted. Is there any liability for Mastercard GPE ? Yeah. Well, too long as we follow our principles, we think we're in really good shape. And the principles we care deeply about our Stability as instability of the currency in question Point number two CARDINAL it must meet consumer protection requirements Me the laws of the land. And this is not new news to us. We've done this in the space for the last 50 years DATE . For everything we've been working with regulated financial institutions on. And so which is why when we got into the space the first thing we did was to find principles. And we will keep abiding by the principles and what we do. Yeah I feel happy because we're in the discussion We're shaping that ecosystem And then 1 day it'll look like we'll be having it done in Many other spaces over years over the past years DATE Search and mirror is a leader within a company that has the power and reach to shape ecosystems and he'll be making strategic and financial decisions that shape the business. I wanted to know what he sees when he looks What's the opportunity for MasterCard ORG in the next 10 years DATE but most excites you? Are very sizable consumer payments opportunity Which we stand very well poised to actually capitalize on. This is the trend of the shift from cash to electronic functional payment. If you think about it globally, there's still a ton QUANTITY of cash. Which remains to be left on a fine. And that that opportunity is huge The second ORDINAL pillar for me is around We have identified over the past few years DATE a sizable total addressable market in what we call new payment flows bucket number three CARDINAL is around services it goes back to our Insights PERSON analytics are broad management capabilities and everything we're doing that space and then the last piece around new networks which is around open banking and digital light entity. What are some of the challenges for mastercard over the next 10 years DATE that keep you open night TIME ? On what's going on from a technology innovation standpoint and making sure we're leading from the front not turning our back to it and saying we're gonna walk in the other direction We've got to engage with people who could potentially be Disintermediators competitors to let them know what value we can bring while they're executing on their strategy. So, that's number one CARDINAL . Number two CARDINAL is I mean the world is getting More into a regulatory environment where regulation regulators are playing a bigger role. Nationalism is playing a bigger role. It's important for us to continue do everything we're doing by being local. It's important to be a global company but be deemed local and that's gonna be important for us to execute on because at the end of the day DATE , sitting in my role is the CFO ORG . Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on execution and that's what we do everyday what's the biggest change that you see your role having over the next 10 DATE
Principles we think we're in really good shape and the principles we care deeply about our Stability as instability of the currency in question Point number two CARDINAL it must meet consumer protection requirements It must be the laws of the land. And this is not new news to us. We've done this in the space for the last 50 years DATE . For everything we've been working with regulated financial institutions on. And so which is why when we got into the space the first thing we did was to find principles and we will keep abiding by those principles and what we do. Yeah I feel happy because we're in the discussion We're shaping that ecosystem And then 1 day it'll look like we'll be having done in many other spaces over years over the past years DATE . Is a leader with an accompany that has the power and reach to shape ecosystems and he'll be making strategic and financial decisions that shape the business. I wanted to know what he sees when he looks ahead. What's the opportunity for Mastercard in the next 10 years DATE but most excites There still remains a very sizable consumer payments opportunity which we stand very well poised to actually capitalize on. This is the trend of the shift from cash to electronic funds or payment. If you think about it globally, there's still a ton QUANTITY of cash. Which remains to be electron And that that opportunity is huge The second ORDINAL pillar for me is around Identified ORG over the past few years DATE a sizable total addressable market in what we call new payment flows bucket number three CARDINAL is around services it goes back to our Insights Analytics PERSON are broad management capabilities and everything we're doing that space and then the last piece around you networks which is around open banking and digital light entity. What are some of the challenges for Mastercard ORG over the next 10 years DATE that keep you open night TIME ? Technology innovation standpoint and making sure we're leading from the front not turning our back to it and saying we're gonna walk in the other direction. We've got to engage with people who could potentially be Mediators competitors to let them know what value we can bring while they're executing on their strategy. So, that's number one CARDINAL . Number two CARDINAL is Look I'm in the world is getting More and more into a regulatory environment where regulation regulators are playing a bigger rule. Nationalism is playing a bigger role. It's important for us to continue do everything we're doing by being named local. It's important to be a global company but be deemed local and that's gonna be important for us to execute on. At the end of the day DATE , sitting in my role is the CFO ORG . Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on execution and that's what we do everyday. What's the biggest change that you see your role having over the next 10 years DATE ? Honestly I'm not really in the business of predicting that much as it relates to how it's gonna change what I can see happening is greater emphasis on making sure We're leading from the front on executing but also failing fast and that's where a CFO ORG can play a big role And by that I mean You're not always gonna win. There are things you're gonna do. Hopefully you get more right than wrong. But recognizing things which are not working out. And making sure you actually feel fast on them. And get out of them. Because you can get you can fall in love with stuff. Keep doing it. Keep wasting resources don't really realize that it's not gonna pay off and I think the imposes around that is gonna only increase for that Resource ORG environment. What advice would you give a CFO ORG today DATE ? Hey I think it's important to stay calm I think it it's important to recognize that change is going to happen you can't fight change What really matters is how you can get up and actually deal with that change. That's super important for a CFO ORG . Being really clear and crisp in your communications. The outside world wants to hear in very simple terms. What exactly this company stands for and why they should believe that you are a good investment. I noticed I've said nothing about financials and I said nothing about necessarily financial infrastructure and systems because I do believe as a CFO ORG . Those things are table sticks so you gotta make sure that stuff happens. You gotta level technology. You gotta drive efficiency in the business. You gotta get the numbers right. You gotta have a good control in the moment. But what's gonna call you apart is the is the other elements which I spoke If MasterCard ORG can meet ambitious goals for growth in its poor business And build on straight
We're gonna walk in the other direction We've got to engage with people who could potentially be Mediators competitors to let them know what value we can bring while they're executing on their strategy. So, that's number one CARDINAL . Number two CARDINAL is Look I mean the world is getting More into a regulatory environment where regulation regulators are playing a bigger role. Nationalism is playing a bigger role. It's important for us to continue do everything we're doing by being gamed local. It's important to be a global company but be deemed local and that's gonna be important for us to execute on because at the end of the day DATE , sitting in my role is this year four DATE . Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on execution and that's what we do every day what's the biggest change that you see your role having over the next 10 years DATE ? That's really good question. Predicting that much as it relates to how it's gonna change what I can see happening is greater emphasis on making sure Leading from the front on executing but also failing fast and that's where a CFO ORG can play a big role And by that I mean You're not always gonna win. There are things you're gonna do Hopefully you get more right than wrong but recognizing things which are not And making sure you actually feel fast on them and get out of them because you can get you can fall in love with stuff Keep doing it. Keep wasting resources. Don't really realize that it's not gonna pay off. And I think the emphasis around that is gonna only increase for that. What advice would you give a CFO ORG today DATE ? Hey I think it's important to stay calm. I think it it's important to recognize that change is going to happen. You can't fight change. What really matters is how you can get up and actually deal with that change. That's super important for a CFO ORG . Being really clear and crisp in your communications. The outside world wants to hear in very simple terms. What exactly this company stands for and why they should believe that you are a good investment. I noticed I've said nothing about financials and I've said nothing about necessarily financial infrastructure and systems because I do believe as a CFO ORG . Those things are able to stick so you've gotta make sure that stuff happens. You gotta level technology. You gotta drive efficiency in the business. You gotta get the numbers right. You gotta have a good control in the moment. But what's gonna call you apart is the is the other elements which I spoke If MasterCard ORG can meet ambitious goals for growth in its poor business Build on strategies that are taking payments to the next level such in merrow will deserve a lot of the credit. I'm Lisa Obramoid's PERSON this is Bloomberg PERSON . What do formula one CARDINAL cars and your local supermarket have in common? Well, strange as it sounds, they might both be using the same technology. A lot of innovation has trickled down from the world of high-tech engines and it hasn't just found a new life in Cars LOC . Engineers from Williams PERSON are using their knowledge from nine CARDINAL constructors championships working with company air foil to help reduce the energy consumption of supermarkets. The device they're building is based on the design of an F one PRODUCT cars rear wing. It Supermarket energy consumption by 25% PERCENT one innovation from F one PRODUCT is also helping hybrids reduce their carpet footprint That's curse or the kinetic energy recovery system in common parliaments it's known as regenerative breaking and works by storing energy of the car to celebrating in a battery for later use Engine ORG exhaust that could allow cars to generate the same power using 30% PERCENT less fuel. Everyday against climate change.
At the end of the day DATE sitting in my rollers this year DATE four CARDINAL Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on execution and that's what we do everyday. What's the biggest change that you see your role having over the next 10 years DATE ? Honestly I'm not A business of predicting that much as it relates to how it's gonna change what I can see happening is greater emphasis on making sure We're leading from the front on executing but also feeling fast and that's where a CFO ORG can play a big And by that I mean You're not always gonna win. There are things you're gonna do. Hopefully you get more right than wrong. But recognizing things which are not working out. And making sure you actually feel fast on them and get out of them. Because you can get you can fall in love with stuff. Keep doing it. Keep wasting resources. Don't really realize that it's not gonna pay off. And I think the inputs is around that is gonna only increase for that. Resource environment. What advice would you give a CFO ORG today DATE ? Hey I think it's important to stay calm I think it's a border to recognize that change is going to happen. You can't fight change. What really matters is how you can get up and actually deal with that change. That's super important for our CFO ORG . Being really clear and crisp in your communications. The outside world wants to hear in very simple terms. What exactly this company stands for and why they should believe that you are a good investment. And notice I've said nothing about financials and I've said nothing about necessarily financial infrastructure and systems because I do believe as a CFO ORG . Those things are table sticks. You gotta make sure that stuff happens. You gotta level technology. You gotta drive efficiency in the business. You gotta get the numbers right. You gotta have a good control in the moment. But what's gonna call you apart is the is the other elements which I spoke If Mastercard GPE can meet ambitious goals for growth in its core business Strategies ORG that are taking payments to the next level such in merrow will deserve a lot of the credit. This is Bloomberg PERSON . What do formula one CARDINAL cars and your local supermarket have in common? Well, strange as it sounds, they might both be using the same technology. A lot of innovation has trickled down from the world of high-tech engines and it hasn't just found a new life in road Technology in them is also helping to cool down our produce aisles engineers from Williams PERSON are using their knowledge from nine CARDINAL constructors championships working with company air foil to help reduce the energy consumption of supermarkets the device they're building is based on the design of an F one PRODUCT They estimate they can reduce supermarket energy consumption by 25% PERCENT . One CARDINAL innovation from F one PRODUCT is also helping hybrids reduce their carpet footprint. That's curse or the kinetic energy recovery system. In common parliaments, if known as regenerative breaking Works ORG by storing energy of the car to celebrating in the battery for later use. That's not enough. System looking to harness the heat produce from breaking and the engine exhaust that could allow cars to generate the same power using 30% PERCENT less fuel. Climate change. We make it very transparent to the shopper before they accept an order. What's the order is gonna look like? How much we're gonna pay them and how much like the consumer is paying them? And so they can decide whether they take an order or was else it refuse it. And that's the kind of flexibility that workshop is Value ORG is a kind of transparency that they want. Are you seeing a labor shortage right now? And what are you doing to to combat that? It's different in different places. All demographic of shoppers Food delivery and right here.
But what really matters is can you really live over and execute? And we've gotta stay focused on execution. And that's what we do every day. What's the biggest change that you see your role having over the next 10 years DATE ? That's really good question. Honestly, I'm not The business of predicting that much as it relates to how it's gonna change what I can see happening is greater emphasis on Sure Leading ORG from the front on executing but also failing fast and that's where a CFO ORG can play a big role And by that I mean You're not always gonna win. There are things you're gonna do Hopefully you get more right than wrong but recognizing things which are not working out And making sure you actually feel fast on them and get out of them because you can get you can fall in love with stuff Keep doing it. Keep wasting resources. Don't really realize that it's not gonna pay off. And I think the emphasis around that is gonna only increase for that. Capital resource environment. What advice would you give a CFO ORG today DATE ? I I think it's important to stay calm. I think it it's important to recognize that change is going to happen. You can't fight change. What really matters is how you can get up and actually deal with that change. That's super important. Being really clear and crisp in your communications. The outside world wants to hear in very simple terms. What exactly this company stands for and why they should believe that you are a good investment. And notice I've said nothing about financials and I've said nothing about necessarily financial infrastructure and systems because I do believe as a CFO ORG . Those things are table sticks. You gotta make sure that stuff happens. You gotta leverage technology. You gotta drive efficiency in the business. You gotta get the numbers right. You gotta have a good control environment. What's gonna call you apart is the is the other elements which I spoke man. If Mastercard PERSON can meet ambitious goals for growth in its core business Strategies ORG that are taking payments to the next level such in Mary will deserve a lot of the credit. I'm Lisa Bramoids PERSON . This is Bloomberg PERSON . What do formula one CARDINAL cars and your local supermarket have in common? Well, strange as it sounds, they might both be using the same technology. A lot of innovation has trickle down from the world of high-tech engines and it hasn't just found a new life in F one PRODUCT cars have long been thought of has the peak of cool in technology in them is also helping to cool down our produce aisles engineers from Williams PERSON are using their knowledge from nine CARDINAL constructors championships working with company air foil to help reduce the energy consumption of supermarkets the device they're building is based on the design of an F one Cars PRODUCT rear wing it attaches to fridges to keep more cool air in the unit they estimate it can reduce supermarket energy consumption by 25% PERCENT one innovation from F one PRODUCT is also helping hybrids reduce their carpet footprint that's curse or the kinetic energy recovery system in common parliaments is known as regenerative breaking F one PRODUCT is now looking at hers or a thermal energy recovery system looking to harness the heat produce from breaking and the engine exhaust That could allow cars to generate the same power using 30% PERCENT less fuel. Climate change. We make it very transparent to the shopper before they accept an order. What's your order is gonna look like? How much we're gonna pay them and how much like the consumer is paying them? And so they can decide whether they take an order or is also refuse it. And that's the kind of flexibility that our Really value and the kind of transparency that they want. Are you seeing a labor shortage right now? And what are you doing to combat that? Demographic of shoppers is completely different from food delivery and rate sharing were 70% PERCENT women and half CARDINAL of them moms and that's because of
Hey Facebook is the other one CARDINAL switch at school? If Mastercard PERSON can meet ambitious goals for growth in its core business Strategies ORG that are taking payments to the next level such in Mary will deserve a lot of the credit. Lisa Bromoids PERSON this is Bloomberg PERSON . What do formula one CARDINAL cars and your local supermarket have in common? Well, strange as it sounds, they might both be using the same technology. A lot of innovation has trickled down from the world of high-tech engines and it hasn't just found a new life in road F one PRODUCT cars have long been thought of has the peak of cool in technology in them is also helping to cool down our produce aisles engineers from Williams PERSON are using their knowledge from nine CARDINAL constructors championships working with company air foil to help reduce the energy consumption of supermarkets the device they're building is based on the design of an F Cars LOC rear wing it attaches to fridges to keep more cool air in the unit they estimate it can reduce supermarket energy consumption by 25% PERCENT one innovation from F one PRODUCT is also helping hybrids reduce their carpet footprint that's curse or the kinetic energy recovery system in common parliaments is known as regenerative breaking And works by storing energy of the car to celebrate in a battery for later use. That's not enough. You recovery system looking to harness the heat produce from breaking and the engine exhaust that could allow cars to generate the same power using 30% PERCENT less fuel. Climate change. We make it very transparent to the shopper before they accept an order. What's the order is gonna look like? How much we're gonna pay them and how much like the consumer is paying them? And so they can decide whether they take an order or is also used yet. And that's the kind of flexibility we don't talk is Value ORG is a kind of transparency that they want. Are you seeing a labor shortage right now and what are you doing to to combat that? It's different in different places. All demographic We have 70% PERCENT women and half CARDINAL of them moms and that's because a lot of the job on Instagram NORP is very different and just being in the car with strangers. It's about like going to the store, doing a good job of customer service, of really picking the right products for Humor PERSON and we are seeing that being very appealing to women. Watch Bloomberg PERSON surveillance early edition for the news you need when you need it. Twice as much as possible Can it sustain? Is facing a very different reality. Be ahead of the game. Hey Facebook Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Inflation is a terrible thing. Inflation you could tower. Info PERSON . I don't think it's a currency. I think it's a commodity. Today DATE , we're in an average.
Innovations in the name of speed are helping in the everyday fight against climate change. We make it very transparent to the shopper before they accept an order. What's the order is gonna look like? How much we're gonna pay them and how much like the consumer is paying them? And so they can decide whether they take an order or was also refuse it. And that's the kind of flexibility we don't talk is really Value ORG is a kind of transparency that they want. Are you seeing a labor shortage right now and what are you doing to to combat that? It's different in different places. All demographic of shoppers is completely different from food delivery and write sharing. We have 70% PERCENT women and half CARDINAL of them are moms. And that's because a The job on Instagram NORP is very different and just being in the car with strangers. It's about like going to the store, doing a good job of customer service of really picking the right products for the consumer and we are seeing that being very appealing to women. Watch Bloomberg PERSON surveillance early edition for the news you need when you need it. In New York GPE and Anna Edwards PERSON in London GPE . Australia Central Bank ORG . Surveillance Can it sustain? It's normal at a time when everybody else is facing a very different reality. Be ahead of the game. Welcome to Debbie Australia ORG Hey Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Inflation is a terrible thing inflation you could tower. Can you think about bitcoin I don't think it's a currency I think it's a commodity today DATE we're in and everything Bob PERSON I'm Francy Laqua PERSON welcome to Bloomberg Front Roll ORG and there will tell is a titan of European NORP banking at UBS ORG he transformed the firm's investment bank he's now the chief executive of major Italian NORP lender only credit over the course of his career or child has had to navigate numerous crisis and now is Different ORG . The most serious conflict in Europe LOC since World War EVENT two CARDINAL rampant inflation and aggressive central bank tightening. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising custody of energy. The Italian NORP has also faced personal challenges recently including a dramatic and public legal battle with Santander PERSON over their butt to tent to hire him as chief executive. I will always be sorry for how it went this is another bank I admire a lot and that hasn't changed I think for me it was more about Confirming the facts. It was obviously an emotional roller coaster. From a family standpoint it was great impactful. TV interview since becoming chief executive. We talk about his new role at Unaccredit. The impact of the war in Ukraine GPE . The challenges of being Europe LOC 's bank and that sent under a debacle. Here's my conversation with Andrea Alche PERSON . Thank you so much for speaking to Bloomberg PERSON . So, you've been in the job just over a year DATE . Was it everything you hope for? More. Really? Much more. Yes. Not stressful. Stressful but I like stressful I think that what has been great this year DATE is a way you can credit Really welcome me into the organization. It was full of passion, full of warmth, and you feel
What are you doing to to combat that It's different in different places or demographic of shoppers is completely different from food delivery and write sharing with 70% PERCENT women and half CARDINAL of them moms and that's because a lot of the job on Instagram NORP is very different and just being in a car with strangers. It's about like going to the store, doing a good job of customer Service ORG of really picking the right products for the consumer and we are seeing that being very appealing to women. Watch Bloomberg PERSON surveillance earlier edition for the news you need when you need it. Twice as much as Can it sustain? Everybody else is facing a very different reality. Blueberries ORG . Over technology. Access the financial world on demand. Here from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Inflation is a terrible thing. Inflation you could tower. Fall. I don't think it's a currency. I think it's a commodity. Today DATE , we're in an everything boat. I'm Francy Laqua PERSON welcome to Bloomberg Front Roll ORG and there are Chen PERSON is a titan of European NORP banking a UBS ORG he transformed the firm's investment bank he's now achieved executive of major Italian NORP lender only credit over the course of his career or child has had to navigate numerous crisis and now is no Rampant inflation and aggressive central bank tightening. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising cost of energy. The Italian NORP has also faced personal challenges recently including a dramatic and public legal battle with Santander PERSON over the robot to tempt to hire him as chief executive. I will always be sorry for how it went That hasn't changed I think for me More about The facts. It was obviously an emotional roller coaster. From a family standpoint it was quite impactful. TV interviews since becoming chief executive. We talk about his new role at Una ORG credit. The impact of the war in Ukraine GPE . The challenges of being Europe LOC 's bank and that sent under a debacle. Here's my conversation with Andre Elche ORG . Andre Orchelle PERSON thank you so much for speaking to Bloomberg PERSON so you've been in the job just over a year was it everything you hope for? More. Really? Much more. Yes. Not stressful. Stressful but I like stressful I think that what has been great this year DATE is a way you create it Really welcome near me into the organization. It was full of passion, full of warmth, and you feel Energy of the people around you. People that want a new vision, a new strategy, a new direction, At ready to commit and own the future. It was absolutely outstanding. Did that surprise you or you expecting more sleepy bank? No but I looked at it more from the perspective of a banker numbers when needs to be done or is the value where it's not the value But when you arrive, you see the people and that makes the whole difference. So that's what what makes it more emotional, I guess. Is this a like? Once what what keeps you up?
We have 70% PERCENT women and half CARDINAL of them moms and that's because a lot of the job are in stock is very different and just being in the car with strangers it's about like going to the store doing a good job of customer service of really picking the right products for the consumer and we are seeing Been very appealing to women. Watch Bloomberg PERSON surveillance early edition for the news you need when you need it. In New York GPE and Anna Edwards PERSON in London GPE . Australia Central Bank ORG . Then surveillance for in-depth analysis And Lisa Brown PERSON with some Jonathan Pharoah YPA PERSON front and center. Can it sustain? It's normal at a time when everybody else is facing a very different reality. Be ahead of the game. Hey Facebook Yes. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Inflation is a terrible thing inflation you could tower. Info PERSON . I don't think it's a currency. I think it's a commodity. Today DATE , we're in an everything boat. I'm Francy Laqua PERSON welcome to Bloomberg Front Roll ORG and there will is a titan of European NORP banking at UBS ORG he transformed the firm's investment bank he's now the chief executive of major Italian NORP lender only credit over the course of his career or child has had to navigate numerous crisis and now is no different Rampant inflation and aggressive central bank tightening. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising cost of energy The Italian NORP has also faced personal challenges recently including a dramatic and public legal battle with Santander PERSON over their butt to tent to hire him as chief executive. I will always be sorry for how it went this is another bank I admire a lot and that hasn't changed I think for me it was more about Confirming the facts. It was obviously an emotional roller coaster. From a family standpoint it was great impactful. TV interview since becoming chief executive. We talk about his new role at Una ORG credit. The impact of the war in Ukraine GPE . The challenges of being Europe LOC 's bank and that sent under a debacle. Here's my conversation with Andrea Alche PERSON . Andre Orchelle PERSON thank you so much for speaking to Bloomberg PERSON so you've been in the job just over a year was it everything you hope for more? Really? Much more. Yes. Not stressful. Stressful but I like stressful I think that what has been great this year DATE is a way you can credit Really welcome me into the organization. It was full of passion, full of warmth, and you feel Energy of the people around you. People that want a new vision, a new strategy, a new direction, and that ready to commit an on the future. It was absolutely outstanding. Did that surprise you? Were you expecting more sleepy bank? No but I looked at it more from the perspective of a banker numbers To be done or is the value or it's not the value But when you arrive, you see the people and that makes the whole difference. So, that's what what makes it more emotional, I guess, is this like. What keeps you up at night TIME ? The emotions are now very engaged and you feel a duty and a commitment to the people who are looking up at you to To
Inflation is a terrible thing. Inflation you could tower. Rainfall GPE . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Francy Laquat welcome to Bloomberg Front Row and there are Chell ORG is a tighten of European NORP banking a UBS ORG he transformed the firm's investment bank he's now the chief executive of major Italian NORP lender unicredit His career or Chel PERSON has had to navigate numerous crisis and now is no different as the world grapples with the most serious conflict in Europe LOC since World War EVENT two CARDINAL rampant inflation and aggressive central bank tightening. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising cost of energy. The Italian NORP has also faced personal challenges recently including a dramatic and public legal battle with Santander PERSON over the robot to Kent ORG to hire him as chief executive. I will always be sorry for how it went. This is another bank I admire a lot and that hasn't changed I think for me More about The facts. It was obviously an emotional roller coaster. From a family standpoint it was quite impactful. TV interviews since becoming chief executive. We talk about his new role at Unaccredit. The impact of the war in Ukraine GPE . The challenges of being Europe LOC 's bank and that sent under debacle. Here's my conversation with Andre Alche PERSON . Andre Orchelle PERSON thank you so much for speaking to Bloomberg PERSON so you've been in the job just over a year was it everything you hoped for more? Really? Much more yes. Not stressful. Stressful but I like stressful I think that what has been great this year DATE is a way you create it Really welcome to me in two CARDINAL of the organization. It was full of passion, full of warmth, and you feel Energy of the people around you. People that want a new vision and new strategy, a new direction, At the ready to commit and own the future. It was absolutely outstanding. Did that surprise you? Were you expecting more sleepy bank? No but I looked at it more from the perspective of a banker numbers What needs to be done or is the value where it's not the value But when you arrive, you see the people and that makes the whole difference. So, that's what what makes it more emotional, I guess, is this like What keeps you up at night TIME ? Well, the emotions are now very engaged And you feel a duty and a commitment to the people who are looking up at you to To take my ministers and direction And that I think puts a lot of weight on your shoulders. Russia GPE is one CARDINAL of the top three CARDINAL in Europe LOC how do you deal with the employees in Russia GPE with your subdride in Russia GPE Well, first ORDINAL of all, frost, it's important to understand that We have to remember that 95% PERCENT of the bank is not in Russia GPE . No And we cannot commit the mistake of spending the entire time on Russia GPE where our emotion and the shock that we have taken Is probably driving us to do. So what we have done is we have a situation room that is fully committed to do that. We've all been skill sets but we need from legal to tax to accounting to everything else. And they work on managing our exposure towards Russia GPE . The rest of the team is 105% PERCENT to 110% PERCENT focus on running the rest of the of the equation. When I look at Russia GPE separating it there are two CARDINAL orders of effects that we look at. One is a Shot. Exposure to Russia GPE I think that in the last 2 months DATE We have a chip to reduce its meaningfully by about two 1 billion MONEY we've done that actually the team has done a great job without that costing the bank almost anything which was not to be expected And at the same time we have understood very well and in a granular way what the risks are And we think that in Q one we took a very conservative set of provisions to try and insulate ourselves the most possible from the further effect from a degeneration of that situation. The provisions were quite
Really welcome to me into the organization. It was full of passion, full of warmth, and you feel Energy of the people around you. People that want a new vision, a new strategy, a new direction, and that ready to commit an on the future. It was absolutely outstanding. Did that surprise you? Were you expecting more sleepy bank? No but I looked at it more from the perspective of a banker numbers To be done or is the value or it's not the value But when you arrive, you see the people and that makes the whole difference. So, that's what makes it more emotional, I guess, is this like What keeps you up at night TIME ? The emotions are now very engaged and you feel a duty and a commitment to the people who are looking up at you to To take 5 minutes TIME searching direction That I think puts a lot of weight on your shoulders. Are you a credit exposure to Russia GPE is one CARDINAL of the top three CARDINAL in Europe LOC ? How do you deal with the employees in Russia GPE with your subsidry in Russia GPE ? Well, first ORDINAL of all, for us, it's important to understand that we we have to remember that 95% PERCENT of the bank Is not in Russia GPE . No And we cannot commit the mistake of spending the entire time on Russia GPE where our emotion and the shock that we have taken He's probably driving us to do. So what we have done is we have a situation room that is fully committed to do that. We've all the skill sets that we need from legal to tax to accounting to everything else. And they work on managing our exposure towards Russia GPE . The rest of the team is 105% PERCENT to 110% PERCENT focus on running the rest of the of the equation. When I look at Russia GPE , separating it, there are two CARDINAL orders of effects that we look at One CARDINAL is a direct shot Our exposure to Russia GPE I think that in the last 2 months DATE We have a chip to reduce it meaningfully by about two 1 billion MONEY . We've done that actually. The team has done a great job without that costing the bank almost anything which was not to be expected. And at the same time we have understood very well and in a granular way what the risks are and we think that in Q one we took a very conservative set of provisions to try and insulate ourselves the most possible from the further effect from a degeneration of that situation. The provisions were quite large and the market Cook PERSON it quite well. Is that how you would describe it I think so I think we what we did is during those 2 months we were able to articulate In a detailed way what is our extreme loss scenario for Russia GPE Converted in in numbers on hit on capital it's about 130 CARDINAL business points of capital And in the first quarter DATE we took about 195 CARDINAL to be exact. You do with this units are you frustrated that you kept you keep on getting asked Over and over what will happen to to Russia GPE and the employees there? Well I think that anyone who has a large presence in Russia GPE or significant presence in large in in Russia GPE 's being asked is normal. I think we believe strongly that Let us show you what we execute and let's talk about it then At this point in time while we have reviewed the situation we have a number of options on that we could pursue Options ORG are very much affected by the next wave of sanction Who have a counterparts, what we can do, what we cannot do, and at the same time we should not forget that we do have 4000 employees in Russia GPE . We do have 1500 CARDINAL corporate clients and what people sometimes forget is that 12 50 CARDINAL actually Europeans NORP were trying to go through the same thing that we're Through as a bank which is deal with a situation the best way possible. Do you have a preferred route? And actually, is there a situation where you just say, we need to get rid of it. What do you say to the critics? Let's say, Andre PERSON , you should have gotten rid of this Whatever the cost. I think I'll review is Number one CARDINAL my preferred route is not necessarily root but can I can be executed in the same way that we have given detail of how much of our crossbow exposure we have reduced We could have reduced a lot more If it wasn't for me.
When you arrive, you see the people and that makes the whole difference. Makes it more emotional, I guess. Is this like? Once what what keeps you up at night TIME ? Well, the emotions are now very engaged And you feel a duty and a commitment to the people who are looking up at you to To take 5 minutes TIME certain direction That I think puts a lot of weight on your shoulders. Russia GPE . Well, first ORDINAL of all, for us, it's important to understand that we we have to remember that 95% PERCENT of the bank is not in Russia GPE . No. And we cannot commit the mistake of spending Entire time on Russia GPE where our emotion and the shock that we have taken East LOC probably driving us to do So what we have done is we have a situation room that is fully committed to do that We've all the skill sets that we need from legal to tax to accounting to everything else. And they work on managing our exposure towards Russia GPE . The rest of the team is 105% PERCENT to 110% PERCENT focus on running the rest of the of the equation. When I look at Russia GPE , separating it, there are two CARDINAL orders of effects that we look at. One is a Shot. Our exposure to Russia GPE I think that in the last 2 months DATE We have a chip to reduce it meaningfully by about two 1 billion MONEY . We've done that actually the team has done a great job without that costing the bank almost anything which was not to be expected. At the same time we have understood very well and in a granular way what the risks are and we think that in Q one we took a very conservative set of provisions to try and insulate ourselves the most possible from the further effect from a degeneration of that situation. The provisions were quite large and the Took it quite well is that how you would describe it I think so. I think we, what we did is during those 2 months DATE , we were able to articulate In a detailed way what is our extreme loss scenario for Russia GPE ? Converted in in numbers on hit on capital it's about 130 CARDINAL business points of capital And in the first quarter DATE we took about 195 CARDINAL to be exact the question is now what you do with this unit are you frustrated that you kept you keep on getting asked Over and over. What will happen to to Russia GPE Indian NORP police there? Well, I think that anyone who has a large presence in Russia GPE or significant presence in large in in Russia GPE is being asked this normal I think we believe strongly that Let us show you what we execute and let's talk about it then This point in time while we have reviewed the situation we have a number of options on that we could pursue The options are very much affected by the next wave of sanction Who have a counterparts what we can do what we cannot do and at the same time we should not forget that we do have 4000 employees in Russia GPE we do have 1500 CARDINAL corporate clients and what people sometimes forget is that 12 50 CARDINAL are actually Europeans NORP who are trying to go through the same thing that we're Through as a bank which is deal with a situation the best way possible. Do you have a preferred route? And actually, is there a situation where you just say, we need to get rid of it. What do you say to the critics? Let's say, Andrea PERSON , you should have gotten rid of this. The cost. I think I review is One my preferred route is not necessarily root but can I can be executed in the same way that we have given detail of how much of our crossbow exposure we have reduced We could have reduced a lot more If it wasn't for successive ways of sanctions but have closed the window on who we can deal with what transaction can we do In which timing. The same applies to our local presence. The solution very much depends on what is allowed to be done by a complex web of sanctions that we have And buy who are our counterparts. We believe very strongly that Want to be consistent with what VU has decided. We need to consider all the options in a way that they reflect fair value because this is
Well the emotions are now very engaged and you feel a duty and a commitment to the people who are looking up at you to To take 5 minutes TIME certain direction That I think puts a lot of weight on your shoulders. Russia GPE is one CARDINAL of the top three CARDINAL in Europe LOC how do you deal with the employees in Russia GPE with your subsidiary in Russia GPE ? Well first ORDINAL of all for us it's important to understand that we we have to remember that 95% PERCENT of the bank is not in Russia GPE . No. And we cannot commit the mistake of spending In tar time on Russia GPE where our emotion and the shock that we have taken He's probably driving us to do So what we have done is we have a situation room that is fully committed to do that We've all the skill sets that we need from legal to tax to accounting to everything else. And they work on managing our exposure towards Russia GPE . The rest of the team is 105% PERCENT to 110% PERCENT focus on running the rest of the of the equation. When I look at Russia GPE , separating it, there are two CARDINAL orders of effects that we look at. One is Sure. Our exposure to Russia GPE I think that in the last 2 months DATE We have a chip to reduce it meaningfully by about two 1 billion MONEY That actually the team has done a great job without that costing the bank almost anything which was not to be expected At the same time we have understood very well and in a granular way what the risks are and we think that in Q one we took a very conservative set of provisions to try and insulate ourselves the most possible from the further effect from a degeneration of that situation. The provisions were quite large and the market It quite well is that how you would describe it I think so I think we what we did is during those 2 months we were able to articulate In a detailed way what is our extreme loss scenario for Russia GPE ? Converted in in numbers on hit on capital it's about 130 CARDINAL business points of capital And in the first quarter DATE we took about 195 CARDINAL to be exact. Do with this units are you frustrated that you kept you keep on getting asked Over what will happen to to Russia GPE Indian NORP police there well I think that anyone who has a large presence in Russia GPE or significant presence in large in in Russia GPE 's being asked it's normal I think we believe strongly that Let us show you what we execute and let's talk about it then The best point in time while we have reviewed the situation we have a number of options on that we could pursue The options are very much affected by the next wave of sanction Who have a counterparts what we can do what we cannot do and at the same time we should not forget that we do have 4000 employees in Russia GPE we do have 1500 CARDINAL corporate clients and what people sometimes forget is that 12 50 CARDINAL are actually Europeans NORP who are trying to go through the same thing that we're Through as a bank which is deal with a situation the best way possible. Do you have a preferred route? And actually, is there a situation where you just say, we need to get rid of it. What do you say to the critics? Let's say, Andre PERSON , you should have gotten rid of this. Whatever the cost. I think I review is One my preferred route is not necessarily root but can I can be executed in the same way that we have given detail of how much of our crossbow exposure we have reduced We could have reduced a lot more If it wasn't for successive ways of sanctions but have closed the window on who we can deal with what transaction can we do and in which timing Vaseem ORG applies to our local presence. The solution very much depends on what is allowed to be done by a complex web of sanctions but we have And buy who are our counterparts. We believe very strongly that Want to be consistent with what VU has decided. We need to consider all the options in a way that they reflect fair value because this is a primary objective for Providing. Right. Too much value to accounter part. Let's put it this way. But he's not justified and at the same thing.
Set of provisions to try and insulate ourselves the most possible from the further effect from a degeneration of that situation. The provisions were quite large and the market took it quite well. Is that how you would describe it? I think so I think we what we did is during those 2 months we were able to articulate In a detailed way what is our extreme loss scenario for Russia GPE Converted in in numbers on hit on capital it's about 130 CARDINAL business points of capital And in the first quarter DATE we took about 195 CARDINAL to be exact. You do with this unit are you frustrated that you kept you keep on getting asked Over and over. What will happen to to Russia GPE and the employees there? Well, I think that anyone who has a large presence in Russia GPE or significant presence enlarge in in Russia GPE 's being asked is normal I think we believe strongly that Let us show you what we execute and let's talk about it then Because at this point in time while we have reviewed the situation we have a number of options on that we could pursue The options are very much affected by the next wave of sanction Who have a counterparts, what we can do, what we cannot do, and at the same time we should not forget that we do have 4000 employees in Russia GPE . We do have 1500 CARDINAL corporate clients and what people sometimes forget is that 12 50 CARDINAL actually Europeans NORP were trying to go through the same thing that we're going Through as a bank which is deal with a situation the best way possible. Do you have a preferred route? And actually, is there a situation where you just say, we need to get rid of it. What do you say to the critics? Let's say, Andre PERSON , you should have gotten rid of this. The cost. I think I'll review is Number one CARDINAL my preferred route is not necessarily root but can I can be executed in the same way that we have given detail of how much of our crossbow exposure we have reduced We could have reduced a lot more If it wasn't for successive ways of sanctions but have closed the window on who we can deal with What transaction can we do and in which time Vaseem ORG applies to our local presence. The solution very much depends on what is allowed to be done by a complex web of sanctions that we have And by who are our counterparts. We believe very strongly that We want to be consistent with what VU has decided. We need to consider all the options in a way that they reflect fair value because this is a primary objective Not Right too much value to the counterpart let's put it this way but he's not justified and at the same time balancing what is leading the best interest of our stakeholder and investors I'm worried are you about inflation about the cost of living you're so tied to the Italian NORP economy and this is an economy in terms of In terms of also exports and imports with Russia GPE that's that's one of the most closely linked We are tied to the Italian NORP economy Than people expect because we are about 40% PERCENT of the bank I think in my first year DATE of operation being tied to Italian NORP economy has been great Good gross good dynamics stable direction of travel. Is that the driving effect? Hey Dees ORG would you like a fact as we look forward We have two CARDINAL central scenarios for ourselves one CARDINAL is a Slow ORG down. And the other one is a depression. At the moment, we see a significant slow down as the central scenario although Has not been affected at all. Beyond prices. So what we're seeing is inflation being the precursor of more. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising cost of energy. We also see But for companies that had investments or that were dependent on energy or on grain to a certain extent the whole value change has been completely alright Destroyed and so they need to reassess what is their position Redesign their models
If we want to be consistent with what VU has decided We need to consider all the options in a way that they reflect fair value because this is a primary objective for Providing. Right. Too much value to accounter part. Let's put it this way. But he's not justified and at the same time balancing what he's been the best interest of our stakeholder and investors. I'm worried about you about inflation about the cost of living. You're so tired to the Italian NORP economy. And this is an economy in terms of energy, in terms of also exports and imports with That's that's one of the most closely linked Well, we are tied to the Italian NORP economy. We're less than people expect because we are about 40% PERCENT of the bank I think in my first year DATE of operation being tied to the Italian NORP economy has been great Good girls good dynamics stable direction of travel. Is that the driving effect? Hey Desmond PERSON drag effect as we look forward We have two CARDINAL central scenarios for our south one is a Slow ORG down. And the other one is a depression. At the moment, we see a significant slow down as the central scenario although Has not been affected at all basically over effects beyond prices. So what we're seeing is inflation being the precursor of more. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising cost of in other energy. We also see But for companies that had investments or that were dependent on energy or on grain to assert an extent the whole value change has been completely Destroyed and so they need to reassess what is their position Change for sources Redesign their models But at this point in time this translate In a slowdown I've investment we haven't seen anything else we do believe that going forward it will be a lot more disruptive. Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure for something Universally important to human life as sleep mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our It's easy to memorize things that makes you smart if you can spit it back a lot of facts but if you wanna be wise if you really want wisdom you gotta know when and how and why to use that information And that's what you bring figures out while you're sleeping. Do you see that coming Taiwan GPE and China GPE . To come from. We will not just cut and draw. 24 hours TIME a day. Bloomberg PERSON . Do you worry about a policy mistake from the ECB if if you have this possible recession or environment and they don't raise rates what happens to inflation and what happens to all of your Italian NORP clients or European NORP clients Well it's a very tricky economic environment for ECB but also in the US GPE On the one hand you have inflation but the inflation is generated by your specific segment of the economy A energy I'm not that sure but raising rates a lot will cool that down because it's very concentrated and it is linked to a dislocation between a friend demand. The rest of the economy however.
We need to reassess what is their position Change for sources Redesigned their models But at this point in time this translate solely in a slowdown I've investment we haven't seen anything else we do believe that going forward it will be a lot more disruptive. Hey Important PRODUCT . I think we've moved from this attitude from it's an indulgence, a waste of time, almost an illness that needs a cure. For something as universally important to human life Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes that a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding It's easy to memorize things that makes you smart. It can spit back a lot of back. But if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what you bring figures out while you're sleeping. Do you see that coming through 24 hours TIME a day. Bloomberg PERSON . Do you worry about a policy mistake from the ECB if if you have this possible recession or environment They don't raise rates. What happens to inflation and what happens to all of your Italian NORP clients or European NORP clients? Oh it's a very tricky economic environment for ECB but also in the US GPE . Yeah. Because on the one hand you have inflation between flesh and is generated by a specific segment of the economy. A energy I'm not that sure that raising rates a lot will cool that down because it's very concentrated and it is linked to a dislocation between a friend demand The rest of the economy however We all agree that he's slowing down and maybe tilting into recession raising rates Create an issue. So, it's very, very tricky to manage and yes, we're all concerned to finding the right balance. I think that getting to more neutral stance towards the oh is probably The moment you go up a lot from there it depends very much on what the rest of the economy is doing. We also have this widening spread between Italian NORP bit of peace and german NORP buttons. How much of a warrior is that? Well, you always have a bit of that every time that there is a crisis there is a so-called flight to quality Happens PERSON i think that like for many other things we need to see how all the economies of Europe LOC are gonna perform in fact Peace environment Think what I was telling investors we have a day is if you look at Today DATE . No. And we are 5 months DATE into the year DATE . You do not see any deceleration of the economy You seem flation, you see a rising rates, you see some very worrying sign, you anticipate a social and an economy impact from the war, but you're not seeing yet. That kind of degeneration that the market is expecting. What is the market looking at? I mean, this is like the market seems to be all over the place. We could be up. We could be down. Are we living for a correction? Well, I think I I read Any interesting report from one of the organization that covers us but we'll remain on named here but but was asked to do a parallel between environment of today DATE and the 70s on inflation Which tells you what kind of mood and and worry exist out there. Personally I don't think it's gonna be that extreme because I think there are a number of amortizers I mean if you look
Raising reach a lot we'll call that down because it's very concentrated and it is linked to a dislocation between a friendly man The rest of the economy however We all agree that he's slowing down and maybe tilting into recession raising rates Neutral stance towards V oh is probably okay the moment you go up a lot from there it depends very much on what the rest of the economy is doing alright we also have this widening spread between How much of a warrior is that? Well, you always have a bit of that every time that there is a crisis that is so called flight to quality. Happens. That like for many other things we need to see how all the economies of Europe LOC are gonna perform in fact During this this environment What I was telling investors we have a day is if you look at Today DATE . And we are 5 months DATE into the year You do not see any deceleration of the economy. You seem flation, you see a rising rates, you see some very wherein sign, you anticipate a social and an economy impact from the war, but you're not seeing yet. That kind of degeneration that the market is expecting. Looking at. I mean, this is like the market seems to be all over the place. We could be up, we could be down, or we living through a correction. Well, I think I I read an interesting report from one of the That covers us but we'll remain on named here but but was asked to do a parallel between the environment of today and the 70s on inflation Which tells you what kind of mood Worry exist out there Personally I don't think it's gonna be that extreme because I think there are a number of amortizers I mean if you look at the facts Italy GPE has managed to Tribute or re Change the average in of its energy to a significant extent of its value change so we now go to John and other places to get a lot of a gas or we will be going if you look at Poland GPE they have found a way to deal with Norway GPE if you look at Bulgaria GPE they connected their pipes towards Greece GPE and the guests that are rushed from there so Europe LOC is adjusting The question is how much time there is but Europe LOC is adjusting. Kind of earthquake way because you could see if there's oil and gas and bargo from Russia GPE what happens to this continent I think it depends on timing. This is that's why the The economic environment that we're looking at it depends on timing and extend of the Breakage away from Russia GPE and to a certain extent from Ukraine GPE If that is done very fast and completely As you said the impact will be quite dramatic Over a Longer period of time the impact will be less dramatic do we have? A significant alarm period of time. I don't know. But that is the key. And we always talk about gas but we also need to understand our dependence on our commodities. Palagiam Lithium PERSON a whole of other things that the entire value chain was predicated on connections with Russia GPE and Green PERSON 's connections with Ukraine GPE That changes from 1 day DATE to the other the shock is very high. You were talking about a political stability in Italy GPE . We were joking about the drug effect. Do you worry? Is that actually politics and it so he has always been quite messy that this political instability comes back and hurts your bank? Well politics in Italy GPE if you're Italian NORP and Italian NORP or politics in Italy GPE but Italians NORP have been able to go through it And Have a lot of trust in the country and and I believe the country has In a certain way And in a way I am much more nervous about the more general impact on economy in Europe LOC the more general social impact on the on Europe LOC immigration
And and worry exist out there Personally I don't think it's gonna be that extreme because I think there are a number of amortizers I mean if you look at the facts Italy GPE has managed to Tribute or re or change the average in of its energy to a significant To get a lot of gas or we will be going if you look at Poland GPE they have found a way to deal with Norway GPE if you look at Bulgaria GPE they connected their pipes towards Greece GPE and the guest that arrives from there. So, Europe LOC is adjusting The question is how much time there is but Europe LOC is adjusting. Kind of earthquake way because you could see if there's oil and gas and bargo from Russia GPE what happens to this continent I think it depends on timing. VC PERSON 's that's why the The economic environment that we're looking at it depends on timing and extend of the Breakage away from Russia GPE and to a certain extent from Ukraine GPE If that is done very fast and completely As you said the impact will be quite dramatic if that is done over a If you can longer period of time the impact will be less dramatic do we have a significant long ago period of time I don't know but that is the key And we always talk about gas but we also need to understand our dependence on our commodities Palagian NORP lithium a whole of everything that the entire value chain was predicated on connections with Russia GPE and Greens Connections ORG with Ukraine GPE That changes from 1 day DATE to hour the shock is very high You were talking about a political stability in Italy GPE . We were joking about the drug effect. Do you worry? Is that actually politics and Italy GPE has always been quite messy that this political instability comes back and hurts your bank? Well politics in Italy GPE if you're Italian NORP and Italian NORP or politics in Italy GPE but Italians NORP have been able to go through it I have a lot of trust in the country and and I believe the country has In a certain way And in a way I am much more nervous about the more general impact on economy in Europe LOC the more general social impact on the on Europe LOC immigration things like that that are going to Not only but the broader continent. How much do you like taking care of risk? So I wanna talk about a little bit about what you're doing inside unicred. Do you feel like you're a risk manager? Is it about also cutting costs? So how do you you have one of the most generous plans actually for investors out there. How will you stick to it? Well I think Stick FAC to it I think We have said very clearly that we felt that the execution of uni training unlocked would yield to a certain level of profitability A certain level organic capital generation based on that we could have very generous. Yes. Distribution to our shuffled. Was that free Russia GPE ? That was pre-rush. So Anticipated that our capital will remain stable through a period at the top end of our peer group and that we would distribute only the excess capital we would generate every year DATE . So, in in that way, it is prudent. It is boardinated to us executing the plan and all of his slavers at the same time because of where we're coming from There is a lot of value to be created. So, that is what generates the distribution that we have. Then we get to the invasion of Ukraine GPE At the moment what we have done is we have changed our macro scenario reference from what it was before to slow down. From GDP standpoint it brings about two to two and a half CARDINAL points lesser GDP gross than we were anticipating from an inflation standpoint it takes to a couple of percentage point more inflation than we were anticipating with peaks in certain countries obviously In that environment Still execute let's say the uni credit unlock plant as it is.
I am much more nervous about the more general impact on economy in Europe LOC the more general social impact on the account on Europe LOC immigration things like that that are going to touch not only Italy GPE but the broader continent. How much do you like taking care of risk? So I wanna talk about a little bit about what you're doing inside unicredit Do you feel like you're a risk manager? Is it about also cutting costs? So, how do you, you have one of the most generous plans actually for investors out there? How will you stick to it? Well I think Always PERSON stick to it I think We have said very clearly that we felt that the execution of unicorn unlocked would yield to a certain level of profitability A certain level organic capital generation based on that we could have very generous. Yes. Distribution to our shuffled. Was that free Russia GPE ? That was pre-rush. So Anticipated that our capital will remain stable through a period at the top end of our peer group and that we would distribute only the access capital we would generate every year DATE . So, in in that way, it is prudent. It is coordinated to us executing the plan and all of his slavers at the same time because of where we're coming from There is a lot of value to be created. So, that is what generates the distribution that we have. Then we get to be invasion of Ukraine GPE At the moment what we have done is we have changed our macro scenario reference from what it was before GDP standpoint it brings about two to two and a half CARDINAL points lesser GDB ORG gross when we were anticipating from an inflation standpoint it takes to a couple of percentage point more inflation than we were anticipating we've peaks in certain countries obviously In that environment Still execute let's say the unicorn lock plant as it is if we keep our eyes on the ball and execute as we should be because on a way the GDPD celebration is in part compensated by higher rates which are good for banks like Podcast. A lot of the satellites have propulsion systems that you gotta move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collisionable unit service. It's a subscription service. We'll send you an alert up to 7 days DATE in If you're satellite's gonna come dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem Now the risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this whizzing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up Had one of the most colorful careers. I don't know if that's the right way to describe it. I don't know how you would describe it. It's only 5 years DATE . It's not been dull or boring following your career moves. Do you feel vindicated? That you were awarded that amount of money? With what happened with Santa GPE there? I think the I will always be sorry for how it went this is another bank I'd know a lot and that hasn't changed I think for me it was more about Firming effects The truth about a new existed
With pics in certain countries obviously In that environment And still execute let's say the unicorn lock plant as it is if we keep our eyes on the ball and execute as we should be because on a way the GDPD celebration is in part compensated by higher rates which are good for banks like Like us. A lot of the satellites have proposal systems that you gotta move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in If your satellite's gonna come dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up Had one of the most colorful careers. I don't know if that's the right way to describe it. I don't know how you would describe it. It's only in the 5 years DATE . It's not been dollar boring following your career moves do you feel vindicated? That you were awarded that amount of money with what happened with Santa GPE there? I think the I will always be sorry for how it went this is another bank I'd know a lot and that hasn't changed I think for me it was more about Firming effects But true spot a new existed And that has been done and it's not controversial. I mean, you will find it. Black or white. The process that has happened. For me was very important because a number of stories were were written at the time. What happens then I mean obviously Santa GPE has appealed we'll see but for me the important point was that The truth is very facts are there Please mentally I have moved on. You know Eight 1 million CARDINAL Never starting a job but also to try and understand what labor laws and everything like that works. Do you think it's changed? Way we look up banking walls and I don't know if it has changed what I know is that we shouldn't forget that Banking is a highly regulated industry as a as a result of that Jobs have a very large component of deferral in their compensation I invite you Kate PERSON 7 years DATE And more than 50% PERCENT if not 16 CARDINAL certain cases of your compensation is deferred over 7 years DATE If you do the math that means that at every point in time you're gonna have between Four X CARDINAL of your compensation. Index to the share price of the bank where you are and if it goes up Four CARDINAL x. Yeah. Becomes even more. Verdict PERSON is when you change organizations. What do you do You either have the New Organization ORG that That Deferral You don't move. In effect that deferral is your entire savings So I do think that although these are large numbers we need to be put in
I think for me More about The facts The truth about a new existed And that has been done and it's on controversial I mean you will find it black or white Through the process that has happened That for me was very important because a number of stories were were written at the time. What happens then I mean obviously Santa GPE has appealed we'll see But for me the important point was that The truth is very facts are there and at least mentally I have moved on. University without never starting a job but also to try and understand what labor laws and everything like that works. Do you think it's changed? The way we look at banking walls and Don't know if it has changed what I know is that we shouldn't forget that Banking is a highly regulated industry as a as a result of that senior jobs have a very large component of deferral in their compensation. Invite your kids 7 years DATE And more than 50% PERCENT if not 16 CARDINAL certain cases of your compensation is deferred over 7 years DATE . If you do the math that means that at every point in time you're gonna have between Four X CARDINAL of your compensation And they just index to the share price of the bank where you are and if it goes up Becomes even more. Verdict PERSON is when you change organizations. What do you do You either have the new organization that That Deferral Don't move. In effect that deferral is your entire savings. So, I do think that although these are large numbers, we need to be put in context of how they got there Usually in most cases in all cases Organization ORG who has Assumes that liability deferred. So, that number is liability and deferral. Is plus a few other things that occurred because of a case but that is what it is. It was an emotional roller coaster. Is it something that you've put behind or is it something that you don't think about? Well, at the beginning, it was obviously an emotional roller coaster From a family standpoint it was quite impactful and I think Personally given the estimate for that bank it was quite impactful I think the the important point was I Once I went through the preparation of the case I detached and I left other people deal with it and it was quite fortunate that those people were excellent And then I trusted the process a lot of people told me not to trust the process but I did Any thundered up being. Me a little bit about your working from home policy. So do you think COVID has changed everything? Is it problematic for a bank to let people work from home? Let's say that what COVID has done both from the standpoint of clients and for standpoint of employees is More remote. Gile. Flexible. I think I think that is not a bad thing. I think it has taken away FaceTime To a certain extent I believe strongly that being at work is important. That's how you establish the culture. How you train people How teams can interact with each other and brainstorm and come up with a good idea. On the other hand and we had started to do something similar at UBS ORG at the time You need to give people the flexibility to organize their lives and you cannot say it's Five or it's whatever it is and that is it. If you allow that flexibility for people to organize their lives and if they need to take a Friday DATE morning And then see the soccer match of their children And then On the Friday evening TIME That's their their choice but I don't think you can replace human interaction brainstorming teamwork you know if you look at the agile way of developing our new our new initiatives are on
You don't move In effect that deferral is your entire savings. I do think that although these are large numbers they need to be put in context of how they got there. Usually in most cases in all cases Organization ORG who has Assumes but liability deferral. So, that number is that liability and deferral. Is plus if you ever think that occurred because of a case but that is what it is. It was an emotional roller coaster. Is it something that you've put behind or is something that you don't think about? Well, at the beginning, it was obviously an emotional Roster ORG . I think from a family standpoint it was quite impactful and I think personally given the estimate for that bank it was quite impactful I think the the important point was I Once I went through the preparation of the case I detached and left other people deal with it and it was quite fortunate that those people were excellent And then I trusted the process a lot of people told me not to trust the process but I did Any tended up being taught me a little bit about your working from home policy so do you think COVID has changed everything is it problematic for a bank to let people work from home? Let's say that what COVID has done both from a standpoint of clients and public standpoint of employees is More remote. Job. Flexible. I think that is not a bad thing I think it has taken away FaceTime To a certain extent I believe strongly that being at work is important That's how you establish the culture. You train people How teams can interact with each other and brainstorm and come up with a good idea. On the other hand and we had started to do something similar at UBS ORG at the time you need to give people the flexibility to organize their lives and you cannot say it's nine to five CARDINAL or it's whatever it is and that is it So if you allow that flexibility for people to organize their lives and if they need to take a Friday DATE morning And then see the soccer match of their children And then work longer on the Friday DATE evening TIME . That's their their choice but I don't think you can replace human interaction brainstorming teamwork you know if you look at the agile way of developing our new our new initiatives around IT From representative from business, technology, compliance risk, all being in one CARDINAL room, and instead of saying you do pieces, how do we resolve the mortgage product? You can do that in the office you can do that remote talk to me about attracting talent so do you do you worry about you know some of the bright young minds going to JP Morgan Golman Sax ORG because they pay more would you worry about them going to crypto or Google because it's exciting Well I think what I have found is that Are as attracted by money as they are and probably more by Version PERSON what's for challenge what do I learn Is this company doing things that I am proud of Care for the environment. Do we care for the communities? Will I be followed in my career and developed which is why we just launched the University These things especially in the early years DATE Quite a lot of space in their decision As they move through And they come in and they move through when what thick spaces how do you treat them how do you track their career manage their career do you give them opportunity that's why I think we're very fortunate I can have A young person from Bosnia GPE who start in the leading back in Bosnia GPE does a tour into Austria GPE , Italy GPE , Germany GPE , And then A skill set that has been refined goes back and it's a bank in Bosnia GPE not many groups can do that and I think that's one of the attraction that we have. Would you like most about being chief executive? Trying to make a difference I have.
Human interaction brainstorming teamwork you know if you look at the agile way of developing our new our new initiatives around IT From representative from business, technology, compliance risk, all being in one CARDINAL room, and instead of saying you do pieces, how do we resolve the mortgage product? You can do that in the office. You can do that remote. Talk to me Attracting talent. So, do you worry about, you know, some of the bright, young minds going to, JP Morgan ORG , Goman, Sax ORG , because they pay more. Would you worry about them going to crypto or Google because it's exciting? Well I think what I have found is that the bright minds As attracted by money as they are and probably more by Version PERSON . What's the challenge? What do I learn Is this company doing things that I am proud of Care for the environment. Do they care for the communities? Will I be followed in my career and develop which is why we just launched the University These things especially in the early years DATE Quite a lot of space in their decision As they move through And they come in and they move through when what takes places how do you treat them how do you track their career manage their career do you give them opportunity that's why I think we are very fortunate that you try it I can have A young person from Bosnia GPE who start in the leading back in Bosnia GPE does a tour into Austria Italy Germany Serbia ORG and then A skill set that has been refined goes back and it's a bank in Bosnia GPE not many groups can do that and I think that's one of the attraction that we have. Would you like most about being chief executive? Trying to make a difference I have been told by many people that no, you know, this cannot be done or this is difficult. A little bit my chance to try and do what I think I it's right It's right is usually I get it from talking to people who and if I can make a difference to unicorn and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And I helped What are our principal what we stand for I think that will be a win. Executive job came up would you be up for it I love you and you create too much Thank you so much. Thank you. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible To the software that is reading it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution we don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ?
I think that's one of the attraction that we have. Would you like most about being chief executive? Trying to make a difference I have been told by many people that no you know this cannot be done or this is difficult this is a little bit my chance to try and do what I think I it's right What I think it's right is usually I get it from talking to people who any if I can make a difference to unicorn and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And a helped What are our principal, what we stand for? I think that will be a win. Executive job came up? Would you be up for it? I love you and you create too much. Thank you so much. Thank you. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible To the software that is reading it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. The FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? Bloomberg GPE has enhanced search on the terminal to deliver what you need when you need it now And everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Performances see new concerts that go behind the scenes plus a claimed archival concerts visit PSO ORG . Org slash now with a music plays on BSO season sponsor Bank of America ORG Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks for having me. Just found out we actually lived in the same dorm in college. So it's been almost a year since you took over From Jeff PERSON CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to unionize in Amazon ORG warehouse your first ORDINAL Work technology conference. Thank you. I wanna start with a quick report card.
Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. BSO Now your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed archival concerts visit PSO ORG . Org slash now with a music plays on BSO season sponsor Bank of America ORG Thank you Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks. Just a few years DATE apart. So, it's been almost a year since you took over From Jeff PERSON I CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to Unionizing Amazon ORG Warehouse your first ORDINAL Bloomberg Conference. Thank you. I wanna start with a quick report car. February 2021 DATE Jeff Bezos PERSON shock the world by announcing plans to step down as amazon CEO Later he passed the rains to andy jassy his long time top lieutenant the architect of one CARDINAL of the company's biggest profit Amazon ORG web services. Test date on his executive chair leaving Jassie to navigate a critical inflection point in Amazon ORG 's history. How does the company manage market turmoil rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back? Me on this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Your view of Amazon ORG 's performance And we've got time later to to really dig in. But quickly how would you grade Amazon ORG 's performance over the last year DATE with Well, I think we, you know, I'm not sure the right person agreed myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've Are good. You know, and I think if you look at during the pandemic which really has extended till the early part of this year DATE , you know, so much of the PPE ORG and food and essential items and people equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Never happened before but it was really hard to do that and we had to take the really big footprint of fulfillment center footprint. We built the first 25 years DATE of Amazon ORG and double it in 24 months DATE . We built out that transportation network in just a couple years DATE . You know we nearly double the size of our workforce during that time and I think you saw it another Businesses, you know, AWS ORG is a really big part of helping And governments have a business continuity during the pandemic and so many companies in organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that Information. So, what about investors? I mean, the stock is.
The first ORDINAL vote to unionizing amazon warehouse your first ORDINAL Bloomberg Thank you. I wanna start with a quick report card. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Later he passed the reins to Andy Jassie PERSON his long time top lieutenant the architect of one CARDINAL of the company's biggest profi Amazon ORG web services Basils PERSON has stayed on as executive chair leaving Jassie to navigate a critical inflection point in amazon ORG 's history. Rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back. On this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Review ORG of Amazon ORG 's performance And we've got time later to to really dig in but quickly how would you grade Amazon ORG 's performance over the last year DATE Customers. Myself during the year or not but I I'll give you my take you know I think with respect to customers I think we've done a lot of good You know and I and I think if you look at during the pandemic which really has extended till the early part of this year DATE you know so much of the PPE ORG and food and essential items and people equipping their home offices Bought ORG from Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Ever happened before? What was really hard to do that? And we had to take the really big footprint of fulfillment center footprint. We built the first 25 years DATE of Amazon ORG and doubled it in 24 months DATE . We built out that transportation network in just a couple years DATE . You know, we nearly double the size of our workforce during that time and I think you saw it another Businesses, you know, AWS ORG is a really big part of helping And governments have business continuity during the pandemic and So many companies in organizations in the last year DATE made the strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that transform So, what about investors? I mean, the stock is down significantly from a peak Obviously there's broader market turmoil Yeah, I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, in in 2021 DATE through 37 CARDINAL year%, over year, it'll it's not a 74 CARDINAL bill Runway ORG business. It's pretty unusual growth and we grew 58 CARDINAL year% of year DATE in our advertising business. You know, it's a 30 One 1 billion dollars MONEY revenue run rate business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE but I think the real challenge for us there is on the cost side and there have been several things Happen. Some of which are more control than others. You know, I think the part that's less control is really around inflation and I think we thought that inflation would start to attenuate in 2020 DATE And with the war in Ukraine GPE , it just went the other way. It has significantly accelerated. So, the cost of trucking and line hall and ocean and air and fuel is just substantially going up and I think that will tenuated some point. No one knows how long that'll take I think the more controllable areas for us are really around fulfillment center capacity and productivity. It was taken about 24 months DATE to build new fulfillment centers during the pandemic It's a weird to make decisions you know I made 2020 DATE in early 2021 DATE on how much demand we're gonna plan for and so you know we we end up with more capacity than we need right now and and there's a number of things that we're working on We've stopped building on properties where we don't need it yet and we've let a number of leases lapse and not a small number, you know, both those things. We've had a lot of occasions in Where we've worked on productivity, made improvements, and we have a lot of clearly to find issues and I'm confident we're gonna get back to the.
Structure technology and disproportionately chose AWS ORG to help them move to the cloud and we spend a lot of time helping them make that transformation. So, what about investors? I mean, the stock is down significantly Peak GPE last year DATE . Yeah, I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, 2021 CARDINAL group 37 CARDINAL year% over year and it's not a 74 1 billion dollars MONEY revenue run rate business it's pretty unusual growth and we grew 58 CARDINAL year% over year and our advertising business you know it's Two 1 billion dollars MONEY revenue runway business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE but I think the real challenge for us there is on the cost side and there have been several Have happened. Some of which are more controllable than others. You know, I think the part that's less control is really around inflation. I think we thought that inflation would start to attenuate in 20 CARDINAL To and with the war in Ukraine GPE it just went the other way and has significantly accelerated so the cost of trucking and line hall and ocean and air and fuel is just substantially going up and I think that will tenuated some point no one knows how long that'll take I think the more controllable areas for us are really around fulfillment Capacity and productivity. It was taken about 24 months DATE to build new fulfillment centers during the pandemic and so we had to make decisions, you know, mid 2020 DATE in early 2021 DATE on how much demand we're gonna plan for. And so, you know, we we end up with more capacity than we need right now and there's Things that we're working on. We we've stopped building on properties where we don't need it yet and we've let a number of leases lapse and not a small number, you know, both those things. We've had a lot of occasions in our Where we've worked on productivity, made improvements, and we have a lot of clearly defined issues and I'm confident we'll get back to the right level of profitability. You are gonna sublieze 30 1 million square feet QUANTITY of space. Is there a mistake in the 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39% PERCENT your year DATE on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision. We made the decision to air on the side of our consumers and sellers. Now, how would you grade amazon ORG 's performance with employees, your colleagues, there has been some high profi Yeah I think that And when I started in this gig we had just create a new leadership principle distribe to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion but I still think there are Areas that we can keep improving. You know, and I think Yo PERSON the first one I I'd mention is safety you know I think that you know in our fulfillment centers that is the top priority and you know when you get into the details the numbers and outside of all the spin of it all you know we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We have, we've notified kind of a top 100 CARDINAL list of Areas that we can be better at that we are just metronomically stepping through and so we've made a lot of progress but we've a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. Tesla laying off 10% PERCENT of his staff Jamie Diamond PERSON says he's preparing for an economic hurricane. The World Bank ORG just slashed its forecast for global growth. How do you feel about the economic climate? I wasn't planning on giving any guidance to the camera. Super bad or super super bad. I think there's some things released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline And if you believe that that equation's gonna flip at some point, which we do, I think it will,
Call number you know both those things we've had a lot of occasions Where we've worked on productivity, made improvements, and we have a lot of clearly to find initiatives and I'm confident we're get back to the right level profitability. You are gonna sublieze 30 1 million square feet QUANTITY of space. Is there a mistake in the Because of the horrible thing Have to make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39 year% or year DATE on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision. We The decision to air on the side of our consumers and sellers. Now, how would you grade Amazon ORG 's performance with employees, your colleagues, there has been some high profile. Yeah. Dad And when I started in this gig we had just create a new leadership principle distribute the earth LOC 's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion but I still think there are Areas that we can keep improving. You know, and I think Yo PERSON the first one I I'd mention is safety you know I think that you know in our fulfillment centers that is the top priority and you know when you get into the details the numbers and outside of all the spin of it all you know we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We have we've notified kind of a top 100 CARDINAL list of Areas that we can be better at that we're just metronomically stepping through and so we made a lot of progress but we've a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. Tesla laying off 10% PERCENT of his staff Jamie Diamond PERSON says he's preparing for an economic hurricane. The World Bank ORG just slashed its forecast for global growth. How do you feel about the economic climate? I wasn't planning on giving any guidance to the guy. Super bad or super super bad. I think there's some things that are released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline And if you believe that that equation's gonna flip at some point, which we do, I think it will it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few, obviously, in 25 years DATE that Amazon ORG . Customers change their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow. We have a road map that's, you know, Probably 3 to 5 years DATE long and we're gonna continue to event. We're We have a lot of work to do to get to where we think we ultimately can get for customers. No, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been overvalued and this also course matters to employees who are Paid ORG in stock. You know, outlook, I haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public I have never tried to predict what the stocks gonna do and anytime I've tried to a little bit I've been wrong. So, you know, I think it's it's pretty hard to Hard to predict what's gonna be in any short period of time. I do really believe that Ben PERSON In the short term the stock market tends to be a voting machine in the long term intense to be a weighing machine. I think if you you know we've been through a lot of points in 25 years DATE and Amazon ORG The macro factors are off and Stocks are down. Our stock is down but you can't really control that. You know, we have a concept we talked about a lot at Amazon ORG . Woods and outputs. You know, in the ultimate output for a company, you share price, you know, and then other big outputs or free cash flow or profit or revenue. You can't Manage the outputs you have.
Although of the worldwide retail market segment share is offline And if you believe that that equation's gonna flip at some point, which we do. I think it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few obviously in the 25 years DATE Customers change their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow. We have a road map that's, you Probably 3 to 5 years DATE long and we're gonna continue to invent. We're gonna continue to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. Now, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been over valued and this also course matters to employees who are Paid ORG in stock. You know, outlook, Haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public. I have never tried to predict what the stocks gonna do in anytime I've tried to a little bit. I've been wrong. So, you know, I think it's it's pretty hard to Pretty hard to predict what it's gonna be in any short period of time. I do really believe that In the short term the stock market tends to be a voting machine in the long term it tends to be a weighing machine I think if you you know we've been through a lot of points 25 years DATE to be at Amazon ORG The macro factors are off and Stocks are down. Our stock is down. You can't really control that. You know, we have a concept we talk about a lot at Amazon ORG . You know in the ultimate output for a company a share price you know and then other big outputs or free cash flow or profit or revenue you can't Manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns Investors and I expect that to be true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun dart PERSON patchai Microsoft ORG such a Nadella IBM's ORG Arvin Krishna PERSON my crown technology Sanjay Mahotra PERSON and that's Gap VM ORG ware and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Coastal ORG points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a What are the moonshots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is it Is it something else Well, you know, we have a unique way that we look at Big new investments and I'm not sure it's right or wrong. It just happens to be our way. And we ask ourselves when we're considering something. We ask If it's successful can it be big and move the needle on Amazon ORG is it being well served today DATE Do we have a different
Imports and outputs you know in the ultimate output for a company a share price you know and then other big outputs of free cash flow or profit or revenue you can't Manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns for investors and I Happy true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so Access PRODUCT the financial world on demand Hear from leading economists Policy makers And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring just see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but the Often PERSON says made in India GPE . Alphabet sun darkella IBM's PERSON Irvin Krishna PERSON my crime technology Sanjay Mayhotra PERSON and that's just And that doesn't count Indians NORP running companies all over the world Why have so many Indians NORP risen to the top Coastal ORG points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world. While the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up about three CARDINAL fourths of the immigrants receiving coveted H one CARDINAL B visas for the US GPE . And it's a safe path that What are the moonshots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is it Well, you know, we have a unique way that we look at Big new investments and I'm not sure it's right or wrong. It just happens to be our way. And we ask ourselves when we're considering something. Four CARDINAL questions. We we ask if it's successful, can it be big and move the needle in Amazon ORG ? Is it being well served today DATE ? Do we have a differentiated approach Do we have confidence there if not can we acquire quickly if we like the answer those questions we'll go pursue with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation investments that seem pretty obvious like you know when I got to that company was Only retailer and then we expanded to music and video electronics and obvious people. Other times that process does not lead to investments to seem obvious to people. I mean AWS ORG was something that people externally and internally thought was little bit nutty at the time. But just What Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments from making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss and a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Flex PRODUCT in Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers who are, you know, get that entertainment for free by Of prime and and so we have a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show Reacher earlier in the year DATE was a huge hit we you know we Nasal season we we just launched new boys season which is are you a big boys fan? Is Amazon ORG a bot? It's very good. Of course we've go to the rings coming up you know.
Four CARDINAL questions. We we ask If it's successful, can it be big and move the needle in Amazon ORG ? Is it being well served today DATE ? Do we have a differentiated approach Do we have confidence there? If not, can we acquire quickly? If we like the answer to those questions, we'll go pursue it with a single thread of team that isn't distracted by the rest of the business and sometimes that leads to innovation, investments that seem pretty obvious, like, you know, when I got to the company was Only retailer and then we expanded to music and video electronics. People. Other times that process does not lead to investments to seem obvious to people. I mean AWS ORG was something that people externally and internally thought was glued but nutty at the time. But just imagine what Amazon ORG would be today DATE without AWS and I think that you see the same thing here you know the there are so many significant investments from making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss and a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Netflix GPE and Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers who are, you know, get that entertainment for free by Of prime and and so we've a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show Reacher earlier in the year DATE was a huge hit we you know we Season we we just launched new boy season which is are you a big boys fan? Is Amazon Vott ORG ? It's very good. Of course, we have go to the rings coming up, you know, in Thursday DATE at football. So, I'm very bush PERSON about it. We also, We're excited about what we've done with MGM ORG you know I think some of the assets there will go very well with the rest of what we're doing entertainment wise. So if you look at Warner Brothers Discovery ORG in Paramount Stars and Global they're building really significant Businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant grocery business which is, you know, early stages for I I'm excited about Kyper FAC which is our low earth orbit satellite that we're building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about The world is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . You'll building the world's best personal assistant. We have, you know, 200 1 million QUANTITY endpoints already that are using Alexa ORG . We're Going to something there and and then you are automatist driving ride healing Zooks that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that Was the chance to be really significant business. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely Company. Just like we were when AWS became successful. So, I think they're very worthwhile investments and bets and I'm optimistic We didn't mention Astro PERSON obviously the powered by Alexa ORG Hey Facebook I don't yet where is it? Widely available for sale. What's I hope you get one. Okay. Thank you Everyone's very curious about Jeff PERSON 's role. These days DATE , what kind of executive chair he really is, he said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside, it looks like he's really focus Philanthropy ORG he's focusing on space what kind of an executive chairman is he What year Jeff PERSON is always gonna be involved and he has you know I feel very lucky to have been in Amazon ORG for 25 years DATE I feel very lucky to have worked directly for Jeff PERSON for 20 CARDINAL of them and we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and
Jeff PERSON for 20 CARDINAL of them and we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and how important is to optimize for customers and how high standards they need to be you know given how easy it is for people to switch and Importance of invention and speed and so you know, I just feel very lucky to have had the chance to work so closely with him. So, is your relationship? I mean, he was your only boss Years DATE , right? It's a relationship fundamentally And it was when you were the head of. Yeah. Of course, you know, every single job you have, the relationships different. You know, remember, my the first couple years DATE I work for Jeff PERSON , I work is what we call the shadow then what's really like achieve the staff and That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and and it's different when I'm in the CEO role but you know the constant has always been that we have a great relationship We collaborate really well. Amazon ORG is poised to become the biggest private sector employer. Second ORDINAL only right now Walmart ORG is is in that spot But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse. I know you've been spending a lot of time at warehouses. When you look at someone like Chris Mall's PERSON who I think some people look at as this modern day hero who got fired, pulled off this un ORG What's your message to someone like him? Your message to the folks who think maybe we should join a union. I know I think that in the first thing to be clear about is that employees get to make that choice where they wanna have a union or not. They always have had that choice and it continues Their choice and you know, we happen to think they're better off without a union for a number of reasons. Including the fact that, you know, it's it's much harder when you have a union to have a direct relationship with your manager And to get things done quickly. So, if you see something on the line that you think could be better for your your team or you or your or customers, Yeah, just go to your manager and say, let's change it. You know, there's a whole process in in bureaucracy that you have to To be able to do that. You know, and and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bring up and we'd much rather hear from every employee. Whatever is on their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time. You have to Really competitive benefits and then I think if you look at Amazons they're very unusual in this space we champion the $ 15 MONEY minimum wage several years ago DATE The starting salaries now over $ 18 MONEY an hour which you know Is more than double the federal minimum wage. You get full health insurance and 401 CARDINAL K and 20 weeks DATE up to 20 weeks DATE of parental leave and if you wanna get a college education, you haven't had one, we've a career Program the website associates be able to do so that is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our our employees and we need to You to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously. What is the mark that you want to make Still. People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the The internet revolution. Who kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Stocked early enough all these precious materials you were just mentioning and we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need.
Asking what kind of material we would need and what quantity we would need. I'm David Weston PERSON . We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. The FTC ORG has revamped its anti trust inquiry into Amazon ORG and by some accounts is Are you preparing for an anti-trust lawsuit from the FTC ORG ? Large company that's growing is too significant like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if if somebody you look, that we would stand up to that scrutiny and I you know, I think What we tried to do in running the business. We can't control You know, you know, whether organizations bring different suits against us but I think if you look at our business, if you actually look at the fact, if you take out of, you know, take out of the equation that they're they're may not be the most objective, you know, leadership Comes to Amazon ORG and that organization. If you look at the facts, you know, in our retail business, we're about one% ORG of the worldwide retail market segment share. And remember, 85% PERCENT of it is still offline. And if you look in our AWS ORG business Yo ORG about depending on how you measure it 95% PERCENT of the worldwide global IT Spanish NORP on premises you know and then we have a cloud business and then we have a portion of that you know we were leading market segment share in Part of this but we operate you know who we compete with NWS Really ORG on premises IT in addition to the clouds. So, you know, these are relatively small percentages of of the entire pie and you can kinda step through all the businesses and I think simply because you've been successful in a few different businesses, doesn't somehow mean that you have a natural market power. It just means you've been Won a couple different customer experiences but we still have AA relatively small amount of market segment share in those areas. What about the SEC ORG you're being sued by them over third ORDINAL party data and how you've used it do you think in the past Amazon ORG made mistakes with letting employees internally see how those third ORDINAL party sellers were doing Pretty good control. I mean, you know, we've, of course, disagree with the premise of that but I would say that we have very good controls with respect to the data that the different employees sats are able to see and by the way I think that we can be better for sellers you know I I I think that Yeah we can have better tools from the get started we give better tools from the manage what they're doing across their their different Amazon Units ORG . I think we can communicate better. There's a whole bunch of things we can do better. And we agonize over every single email or communication we get from sellers. We do very regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with And I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not it can completely changes what's Sellers don't really long for e-commerce software that exist in lots of places And it is not very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of the businesses they're building. So, we have a lot of work to do there like we do in a lot of other I think we were very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still really, you know, significant issue for Sorts of businesses. We have worked really hard to open a lot more. Going to present.
Electronics, chips are still really, you know, significant issue for all sorts of businesses. We have worked really hard to open a lot more. Points of presence and ports in the in the increase our capacity in getting products in but I think it's gonna be something that companies battle with for some time. You made a huge mark. On Amazon ORG with AWS ORG obviously What is the mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era Well I I don't I don't really think of it that way Emily I mean I I don't think it's really about any jazzy era or anyone person you know and and and by the way AWS was not about anyone person that you know if you spend a time on AWS That is an unbelievable team. Not just an incredible leadership team which it is. But just top to bottom. And then the number of inventors and people care about customers Operate NORP you know something where it has to work almost like a doubt and it's it's always teams and so I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses 85% PERCENT of it still lives offline. Oh my god, I think we have a lot of upside, a lot of growth, and I think as much invention as we've seen Last 25 years DATE , you know, the time I've been there, I think it Small compared to the next 25 years DATE . There is a lot for us to invent on behalf of customers and so, you know, I'm excited to be part of the team that makes it happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we were responsibly do that and so you know it's it's it's a long journey that we're working on but I'm excited to be part of it and you know I Garden for a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you. Thanks.
When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Francina shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see you at some point but there's a significant unseen cost to the modern era of global Hummers PERSON . Of all the worlds is huge. 3 CARDINAL may% not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? China GPE slows the Fed ORG worries and former President Trump PERSON strikes back this is Bloomberg Wall St I'm David Weston PERSON . This week DATE 's special contributor Larry Summers PERSON of Harvard ORG on where the housing market is headed. Softness in the future with respect to housing. International finance on the risk and the opportunity of zombie companies. Money that's being spent to keep zombie companies afloat is money that could be more productively deployed elsewhere. It was a week DATE of signals. Some subtle and some not. Doesn't seem likely to fix. She is confronting a number of both you know short term and long term challenges right now I probably the number one CARDINAL thing is the poor performance of the economy. Former President Trump PERSON kept up his attack on Republicans NORP who supported his impeachment so Congressman Liz Chaney PERSON of Wyoming said she wouldn't stop even after she was soundly beaten in her primary. Near the oval office and I mean it. And there was nothing subtle about the inflation signal we got out of Great Britain GPE coming in over 10% PERCENT Explosive move higher in UK GPE guilt yields Tom PERSON and I don't think I'm overdoing it using that language Becoming entrenched. Reading the minute TIME you have to feel that this is a sort of a lead and it supports chairman J Powell PERSON 's tone at the news conference following the June 27 DATE meeting. Beneficials noted that some Of the economy notably housing we're starting to slow as a result of higher interest rates And if you want a confirmation of just how I'm biggest those fed FAC minutes TIME were just take a look at the markets this week DATE with the SMP five Shooting up on Tuesday DATE only fall back down to earth and beyond on Friday ending the week DATE down one. Two% at 42 28 DATE and the Nasdaq was even worse again climbing nicely early in the week DATE only to plunge on Friday DATE ending up down two CARDINAL . Six% GPE help no doubt by Just under three% 297 CARDINAL . To help us understand what the market may be trying to tell us welcome now Bob Prince PERSON he's co chief investment officer for Bridgewater Associates ORG and Ed PERSON Hyman chair of Evercore ISI and vice chair of Evercore And let me start with you. You follow the economy and what's going on in the economy. We've talked about the markets. We've talked What's the economy telling us Well you can't
We talked about the markets we've About the fed ORG what's the economy telling us Well, the economy has two CARDINAL parts to it. Obviously, one CARDINAL part is what the real GDP is or auto sales, then there's inflation An inflation is by far the more important part right now but on the first ORDINAL part Economy is doing okay. As you know, we serve a companies And our retail survey dropped sharply this week DATE but still pretty elevated Housing is really getting hit. But on balance economy is doing okay I think it's probably going two CARDINAL or three% but headed to one% ORG I'm sorry bank loans came out this afternoon TIME and they're up 11% PERCENT now. And retail sales this week DATE we're you know pretty decent On inflation which is much more important I I'm pretty convinced that inflation is slowing Of oil prices came down gasoline prices came down And In the weeds used car prices dropped about three% in the latest month DATE And we survey Retailers pricing power that's now plunging you've heard the stories about the inventories being high and we have been tracking that for a long time it's now really coming down. But the most important part and we don't give my state on this or wages. And obviously the labor markets are very tight But they had from the conference board this week DATE A measure of CEO confidence was almost a record low. And then another survey That showed 80% PERCENT of workers Or concerned about poosing their job. Go go figure that. But we serve a employment agencies every week DATE And ask them among other things about weight pressure and that's now pretty clearly hooked down So I think you're beginning to see some moderation in wages on top of you know prices now cooling And the economy is calling So Bob Ed PERSON sees inflation started to come down. Questions how fast is coming down but starting to come down. How do you see it? And is it coming down enough and fast enough so the federal not have to go much further in raid hikes? It's definitely on the down but the question is where is it settle out The market are discounting The markets are discounting two and a half DATE . And you know, we're coming down from six So, or higher on the core, right? So, but there are really two CARDINAL big imbalances in the economy right now that are need to be resolved through this tightening cycle and we're we're still in this tightening cycle It's it's too early to really see the effects it hasn't been that long to see the effects and so chances are you're gonna get more that weakness as you as you go along. But there are there are two CARDINAL big imbalances in the economy right now that that they're gonna have to be All one is the level of nominal spending in relation to the to the output capacity of labor Over the past year DATE , nominal spending is up 10% PERCENT . And incomes are up 10% PERCENT , and if incomes are up 10% PERCENT , that gets spent and you get more spending at 10% PERCENT . You gotta bring incomes down And if incomes are growing by 10% PERCENT but labor can only produce goods at the rate of four% you get a six% NORP inflation rate And that's the basic that's the first imbalance and that's the basic cause of the inflation that we have right now. It's really not the supply chain. It's just too much spending Which came from the monitorization of government data and the fiscal stimulation. The second ORDINAL imbalance is the level of nominal spending in relation to bonyards. So normal spending is even higher above bonus than it is above output. It's, you know, seven, seven%, above bonus. So, it's the highest in 60 years DATE . So, if, if, if Spanding WORK_OF_ART , if people's incomes are growing Well beyond bond yields it's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit and so
It's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit and so that the the credit numbers it is referring to loans up 11 CARDINAL You know that's a backstop On the economy and spending. So, so it's it's the high level of spending an incoming relation to interest rates and and labor labor production And it's the availability of credit Sustain that. Policy to bring about an equilibrium. Text me the bar brought us back to wages pretty quickly there and it's one of the issues here where did you say that's the hardest get your arms around where are with wages and that wage price spiral because in fact if we are gonna have continuation people are gonna wanna make more money they're gonna go to their bosses and say you need to pay me more Well CEOs now are really bearish So they're not gonna be happy. If you have a CO one but your Bob PERSON and I think about the same way. But money growth has been slowing for about 18 months DATE . We'll talk about that because it was growing gangbusters for a long time. Right. But you're saying it's turned around. So, in the conventional way, you had the checks, you had the quantity of easing in low interest And so money growth got up to almost 30% PERCENT . Which is Extremely fast and that's why you have the strong number growth. Now, with figures I got this afternoon TIME on bank deposits, Mardi Gras PERSON is well less than five%. And so we've set up the mechanism for this novel growth which is way too fast to slow down but that's what has to happen and obviously, this is a really interesting thing. If it slows down, does it come out of real growth or at a prices? If you have your 10% PERCENT normal growth which everybody can understand I think Right now it's about one% ORG real and a nine% price right and if you go to say five% nominal Of what's the mix then? Right Should that fix the inflation problem or at least take us a long way to be fixing it But your total in an economy there are your total sources of funds is your sources for spending and there are three CARDINAL sources there's money There's credit and there's income, right? And so when you get the tight need to monitor your policy, they're contracting money and that's absolutely right. The first ORDINAL effect of a contraction and money is on asset markets. Because if you think about the printing of money by the by the fattering of the central bank they print the money and then they go buy bonds or they print the money and that money then goes into stocks so that money had more most directly effects of financial markets Credit more goes in to spending, right? Because you know, you you take out an auto loan to buy Car. You don't take out an auto loan to buy a bond and the fed ORG doesn't print money to buy a car. They print money to buy financial assets. So, so what you have is a push pull The contraction in liquidity from the central bank is a drag on the financial markets While they're expansion of credit Support the spending And so you've got you got that work in both directions right now. Credits going up. That sounds like it's good. It's gonna spur growth. But that makes it sound like Need ORG credit to come in So probably so in my view of it which is a straight Milton Freeman PERSON take of it of those three CARDINAL pieces that Bob PERSON point out The first ORDINAL one is where it starts. Is the money growth I track global short rates. It's a global economy and they have a higher impact on the US GPE economy than fed funds and they've been going up for about 18 months DATE . Same time that money grows has been slowing. So, I think we're pretty deep in this and we had a pretty good drop in the stock market to your point And and now inflation's coming down. The markets are Beginning ORG to think that this is Introduction.
To your point And and now inflation's coming down the markets are Beginning ORG to think that this is Introduction to the next chapter That the next peel of the onion. Right? So, the money is the first ORDINAL thing, right? The but what that and money is the first thing but it needs to get to the second ORDINAL thing and the third ORDINAL thing to have the permanent effects, right? Which means Have to be in a tightening cycle for long enough for that to happen, right? And we've been in a tightening cycle for how many weeks DATE ? 18 months DATE You have to be in a long enough, right? And so, you know, as we look forward, Think that there's there's gonna be it's too early to tell really how this plays out in terms of whether it's a wheat growth or high inflation or which one but You're probably gonna get some combination of wheat growth high inflation and rising interest rates And all three CARDINAL of those are are rough on asset prices The mix is gonna be determined mostly by how aggressively the fed ORG And stay tight if they have to pay the price of a downturn. Turn next. So, what is really for investors? So, it's too soon to tell. What do we do in the meantime? Or waiting for those answers. Bob Prince PERSON and Ed Kimon PERSON will be back with us for more Wall St Week after the break. Hey guys crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. For something as universally important to human life Mystery LOC surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes that a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding It's easy to memorize things that makes you smart. It can Act a lot of facts but if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what you bring figures out while you're sleeping. New construction contracts faltered and while unemployment actually went down more significant was back to back monthly DATE declines and paying jobs. The bottom line seem to be that the economy was beginning to move forward but with many of lagging part And overall at a pace Embarrass ORG the tortoise. That was Lewis Rockeys around Wall St wave back in August of 1991 DATE when the United States GPE had just come off of a rosely mild and short recession. The number one CARDINAL song if your murder was Brian Adams PERSON , everything I do, I do it for you and the top movie was terminated too judgment day. Still with us or Bob Prince PERSON of Bridgewater and Ed Heyman PERSON have ever courage. So, it's Have a different world today Bob PERSON . For example, on the job situation, we still have a pretty robust jobs economy.
Hey Bob PERSON for example on the job situation we still have a pretty robust jobs economy but for everything we discussed before about the uncertainty of where we are on the tightening cycle what comes next what does that say to an investor? Well, right. Now, we're in that in between stage right now, right? So, you, if you, if you go back just to not too many months It became evident that we had a self sustained inflation that there was gonna be a tight near monetary policy. The markets priced that in yields went up You got to take me in a policy it's still happening it's not over Marcus LOC got a little bit excited about the dip in some of the inflation they started buy down that yield But that we've already given up half CARDINAL of the yield rise that occurred and that actually means the fed ORG needs to do more than if the yields had stayed up where they were, right? Including equity. So, So we're still in this thing we're still in this tightening cycle And like I said there there are really there's gonna be a mixture of three CARDINAL things and you don't know what the mix is yet cuz it's too early to tell but you're gonna get some mixture of wheat growth, high inflation, and rising interest rates. The more the interest rates rise, the more it's the wheat growth. Let's see interest rate rise the more it's a high inflation Text the foot off the break you're gonna that that inflation improvement's gonna go away and you're gonna you know they're gonna favor growth so you don't know which which how they're gonna play it quite yet. So, what we try to do in this kind of environment is is maintain some balance, right? Diversification, obviously, don't Too heavily committed to anyone direction but also even within the equity market you know structure and equity portfolios that have AA cash flow and balance sheet base under them. So that if if the tightening is very aggressive that there's Strong enough balance sheet to hold that up to to sustain their their position in the markets or a sustain a positive cash flow and I think that they companies that are you have a lot of debt in relation to enterprise value or vulnerable, profit margins, that sort of thing. You know, are they are the type that are Vulnerable for that environment. An awful lot hinges on the fed ORG . Surprise, surprise. Jackson Hole GPE coming up next week DATE , okay? A lot of people are paying attention to Jay Powell PERSON is the same. Last year DATE , at this event, he was talking about transitory still. That doesn't work so well this year DATE , right? So, how much guidance can the Fed ORG give us what exactly where they're heading? Well it's hard to hard to know I do think we're gonna get a financial crisis some where somewhere pretty soon It's always been part of the of the tightening cycle But like you point out David, yo, last year DATE , it was really about transitory. He had five CARDINAL Went through five CARDINAL different things that would prove transitory And I I personally think the fit is now on the other side of the wrong foot. You know, now they're doing the entrenched and you know, a year ago DATE , I thought Bonnie PERSON is gonna go to five% and fit funds go to five% and I'm not quite sure what's happened but Money growth kids flow dramatically And combine prices here and come down dramatically and now I'm seeing pricing power coming down and so I think we've made a lot more progress on inflation than I expected and and that's why the market was going up until today DATE but that's that's If inflation keeps coming down Then the market is gonna appreciate that. I don't understand Bob PERSON . We heard why Ed PERSON thinks the feds drop maybe he's got a bit easier actually with some of the things that have happened. But financial conditions Have not tightened. Actually, if anything, do that in someone looser. That makes the first ORDINAL job harder, doesn't it? Literally the first quarter DATE that markets were doing the Fed ORG 's job entirely. Yeah. And then the Fed ORG joined in and wants the Fed ORG joined in and the market saw some, you know, positive signs of inflation. You know, they actually pull back and so, bonus came back down, equity yields, you know Came back down And so You know that as you said about half CARDINAL of the tightening that the markets were applying has been retracted If if you'll be
Oh You know, that as you said about half CARDINAL of the tightening that the markets were applying has been retracted. If yields had stayed where they were It would be that much less that the Fed ORG needs to do but the fact that the yields have actually dropped some and can kinda give him back some of the work that they were doing. It's that much more that the Fed ORG needs to do. And so I think you know it's Ed PERSON referred to last that you know you you raised it and then you know we talked Last year DATE of Jackson Holse ORG news but They were clearly wrong about transitory inflation if if you actually look at the indicators that they follow and they tend to be lagging indicators I haven't heard yet an explanation about how they think inflation, why they think there is an inflation, why they think that that was wrong, and I think that that causes some cause you to question The the how well this this process is gonna be manage is gonna be very tricky. Explain to us what went wrong and why they're not gonna do a mistake again for us to really believe in this time. Oh be helpful. You know, from my vantage point As you can see What they missed was that fiscal stimulus quantitative easing led to a 30% PERCENT increase in the money supply and that did it If you look back at that Jackson Hole FAC they completely missed that now Mardi Gras PERSON is plunging and can my prices are coming down all sorts of signs that are early signs and so the job's not over by any means. But there's progress and if you look back like pickate the 70s when inflation peaked The stock market started to respond to that when you had a very high inflation period like we have now Do you agree with Ed PERSON that in all likelihood we'll have some sort of financial crisis that's what happening happens in serious tight Odds are pretty good, yeah. Yeah, I mean, we haven't had enough tightening yet to really have that. Odds are good. Yeah. I mean, we haven't had the downturn yet. If there's gonna be a downturn, it hasn't happened yet. It's gonna be hard to bring inflation down. Are you gonna bring nominal spending down from 10% PERCENT to five% Without a significant And credit you need to slow credit growth by about half CARDINAL money growth is slowed but you need to slow credit growth in half CARDINAL but it's still rising you're gonna have to you're gonna have to hold interest rates up enough and that's when thing that's when bad things happen I have to tell you this is not a bad thing it's Treat to have the two CARDINAL of you here in Wall St. Really? Thank you so much. That is Ed Himan PERSON . I've ever caught and Bob Prince PERSON of Bridgewater. Coming up, we'll take a look at what's coming up next week DATE on global Wall St. That's next on Wall St on Bloomberg PERSON . Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE . No one covers the world like bloomberg PERSON . In the coming months DATE do you see that coming We will not just cut The moment news breaks 24 hours TIME a day. Bloomberg PERSON . That is a great question. Hey Hey I'm glad you asked that. This is Wall St Week. I'm David Weston PERSON . Let's take What's coming up next?
This is Wall St Week ORG . I'm David Weston PERSON . Let's take What's coming up next week DATE on Global Wall St WORK_OF_ART starting with Julia Sally PERSON in Singapore GPE . Thanks David after unexpected cuts to the medium term lending facility in China GPE we'll be looking to see if the banks follow suit with a cut in the loan primary also on this later interest rate decisions from central banks in South Korea GPE and Indonesia GPE inflation figures from Singapore GPE and Hong Kong GPE trade data Earnings across the region include Qantas GPE , Petro GPE , China GPE , and food delivery giant meat one, Bloomberg Intelligence ORG forecast, Chinese NORP companies, maybe set to report their worst earnings 2 years DATE the focus in Europe LOC for the coming week DATE will be the energy crisis in Europe LOC and we had a lot of developments in the week DATE prior you had the Ryan PERSON dropping to levels that made it untenable to have shipments across it you had record high energy prices in France GPE and Germany GPE you also had mat gaps prices New records as well. So, as we head into this week DATE , the question is going to be, how this impact industry, how it impact individuals? Will there be more demand rationing and demand destruction? We've already seen some of it with different industry having to shut down power plants but how much worse can it get and what will be the impact on the economy? Big weekend economics we have the Jackson Holston Posium ORG coming up and I think our Bloomberg GPE economics team really focused to hear some hawkish comments from chairman Jay Powell PERSON reassuring the market there was no devish pivot and that we are still ago in September DATE for 50 or 75 CARDINAL basis Away from economics back to some of the fundamentals as well. Big week DATE for earnings too. Zoom of course the video conferencing company. How do they sort of continue to grow in the face of further reopening trade maybe less demand for that product? Finally, Peloton ORG , we've heard a lot from this company about assembling some of the bikes at A lot of cost cutting initiatives, all the help sort of get that company back on track. That too will be a key focus for us next week DATE . Thanks to Juliet Sally PERSON , Danny Burger PERSON , and Taylor Riggs PERSON . Well some of those who maybe caught are those so called zombie companies who've loaded up on debt when it was cheap. International finance. That's next on Wall St Week on Bloomberg PERSON . A lot of the satellites have propulsion systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offer to help these companies know how to maneuver their machines Satellite PERSON . That for decades DATE moving satellites around but it's it's sort of like a harder problem now. Just because we've been
The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a clouded debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the lightlier that the collision's going up Communicating PERSON for staying in touch It was nice while it lasted all that support from the fed ORG from oh interest rates. To pumping money into the economy more direct We are deploying these lending powers to an unprecedented extent enabled in large park by the financial backing from the congress ORG and the treasury. We will continue to use these powers forcefully, proactively, and aggressively until we're confident that we are solely on the road to recovery. All of which allowed companies to borrow as much as they wanted which was The 800 lb gorilla which eventually we're all gonna have to question is whether or not this build up in corporate leverage which we've seen over the past 3 or 4 years DATE is that sustainable but now those happy days DATE are over as the Fed ORG has reverse course and says it will keep raising Until the inflation dragon is slain the idea that we are going to start cutting rates early next year DATE when inflation is very likely going to be well well inaccessive our target I just think it's not realistic where does that leave all those companies who've borrowed so much well at least some of them are so called zombies No not those zombies companies that don't generate enough cash to pay their debt and that leads economists like neuro-robini to say we're going to see some of them fail which may just be what we needed to get to the other side. You're tons of firms that were highly Zombie Now that the Titan Inflation FAC is higher that zombies are gonna collapse. And to take us to the strange and exotic world of zombie companies who have sonia gibbs she's managing director and headed sustainable finance at the institute of international finance ORG so Sonia PERSON Thank you so much for joining us on Wall St Week GPE . Let me start with those basic questions. What exactly is a zombie company and how many of them are there out there? First ORDINAL of all, to take a step back. What you need to think about is that over the past 10 or 15 years DATE , global debt levels have skyrocketed. We've had very low interest rates and for example, non-financial corporate debt around the world is now close to 100% PERCENT of GDP. And that's more than double what it Decade ago DATE so that's a very worrying backdrop And so what we mean by zombie companies is a company that essentially has to borrow to keep going. They're highly leveraged. They're not growing very fast. They're revenues are not up to par. And at the moment they face a very difficult situation you've got higher input cost so your commodity prices are higher wages are rising at the same time you don't earn enough revenue to cover all of these higher costs and your debt service so if you have a ratio of re To interest costs that's one CARDINAL or less if you can barely cover your debt service cost we call you a zombie company and it's a very good name it's very evocative And for how many amuse difficult to calculate right because for a lot of firms that for example art publicly listed the information might be less available they might be smaller non-public companies but the federal reserve ORG estimates that between five and CARDINAL 10% PERCENT of US GPE
Might be less available. It might be smaller, non-public companies, The Federal Reserve ORG estimates that between five and CARDINAL 10% PERCENT of US GPE firms fall into this category It's also important to remember that this is not a static world. It's not once a zombie, always a zombie. Conditions change and in fact, becoming a zombie company is a little bit cyclical. In the sense that when times are good, maybe interest rates are low, growth is high, maybe you're not a zombie. But then, you know, bad things happen. Pandemics happen. Shocks happen. Interest rates go up And a company that was formerly doing reasonably well Might suddenly fall into the zombie category. So so you mentioned the overall debt load which is true certainly in the United States GPE and not just in United States GPE in part because interest rates are so low there's some very very successful healthy companies that loaded up on debt cuz it was so cheap but and whenever we've talked about this risk in the last few years DATE I said don't worry as long as interest rates are low we're fine it looks like those days maybe on their way Higher interest rates. So, what kind of pressure is that put on these zombie companies? Well, I think it's AA good analogy, right? It's all fine until it's not. And so you've had AA kind of a confluence of factors that have hit pretty much at the same time. You had a pandemic which hit growth. You had commodity price shock. You have writing inflation. You have Interest rates and you also have firms who's who's business models. For example, have been entirely changed by the pandemic. Amongst the list of zombie companies you might find a company like we work. You know, a company that has been very successful but at the same time, the pandemic has changed a lot of things for that for that company. Carnival cruise lines is another good example of a type of company who's now in the zombie category or some of the meme stocks, you know, AMC ORG , your Up. So these are really household names. Think that the difficulty is at a point in time when you've got wages rising when you have higher input costs these firms may not be able to borrow as much as they need to borrow to keep afloat. Tend to find zombie companies concentrate in certain sectors or in certain size corporations So I think it's fair to say that the the sectors that are worse off in terms of percentage of zombie firms are probably in manufacturing and in retail and retail of courses industry that's undergoing secular change over the long term as we move to sort of more online no less brick and mortar think there are there are underlying structural issues there and in Sector in any case but I think some of the companies that are hardest hit tend to be smaller firms and if you think about a small company there sort of inherently face greater credit risks than some of the larger better established companies that have long standing histories and track records in borrowing their you know Familiar to investors smaller companies have a harder time accessing funds especially when when borrowing conditions are difficult and with some of these companies having fallen on hard times during the pandemic You know there are estimates that suggested in some cases as much as 25 30% PERCENT of the small cap companies especially if you include unlisted companies could be falling into this sort of zombie trap I wonder saying about the larger effects on the economy. Obviously, we don't wish ill for any corporation but there's gonna be a lot of stress put on a lot of the companies you're describing right now. And so far is that all gets sorted out to use a eufacism perhaps. Is there some benefit for the economy and redeploying the capital they represent into things that might be more productive than Enterprises. I think we might wanna think about this in a short term and a long term context. So in this short term It is very helpful for the economy to keep these companies afloat and you could think of the example of Japan GPE here which is spent over 800 1 billion US dollars MONEY since the pandemic hit to support its companies so you avoid bankruptcy, you keep people employed, you keep these companies float, but there's Longer term cost to be paid for that because when you think about it money that's being spent Is money that could be more productively deployed elsewhere you could put it in there to capital spending you could put it into infrastructure you could put it in a new Indian NORP
Float is money that could be more productively deployed elsewhere. You could put it into capital spending. You could put it into infrastructure. You could put it in a new industry, new technology, maybe. In the ESG world or or green technology that can really deliver a boost to productivity and growth. So it's kind Foregone opportunity in that sense. Japan GPE is a good one. It strikes me. There are political consequences of letting zombie companies go ballet up. You know that the politics of these things are are always difficult, right? I mean one of the the conclusion is that you can come to is it if you have a high proportion of of zombie companies if you have companies that you're worried about keeping a float there's political pressure to keep that going. The more that borrowing cost rise, the more the interest rate rise, the harder time these companies will have keeping going. So if you're in a world where inflation is rising and you have central banks having to make a very difficult balance Controlling inflation and supporting growth which can involve supporting some of these less profitable companies. You know, it's a it's a it's a rock and a hard place. You know, where do where do you draw the line? Sign you if in fact the fed ORG could have been held responsible for this company and maybe it's not what they're intent but it's certainly was a consequence of extraordinary low interest rates for a long time. Think ultimately has arbitraries of the price of money you could hold the fed ORG responsible for everything really but certainly it was an inadvertent consequence of a low interest rate so I mean if you think of the the many many years when we had low and in some countries even negative interest rates there were warnings sounded The time. There are risks to financial stability. There are risks to long term growth. It's going to stoke inflation. It's going to distort financial markets. Is distort asset valuations. And in fact you can think of zombie companies as a type of distorted asset valuation right because a company of it cannot generate enough revenue to support its debt service and it's running costs arguably is trading at an inflated valuation because it can continue to borrow at low rates so Consequence ORG of something that had to be done to keep growth going during the the after the financial crisis International finance pleasure to be here. Larry Summers PERSON of Harvard ORG . This is Wall St Week on Bloomberg Companies ORG now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or robot is gonna Whether or not a human ever gets their eyes on it. That might not be totally inclusive or not be Concerns about how this technology could exacerbate discrimination. For the FTC ORG , I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ?
You trust them to self regulate AI ORG . This is Walsh St. I'm David West PERSON . So, we're gonna wrap up the week DATE once again with our special computer, Larry Summers PERSON of Harvard ORG . Larry PERSON , thanks so much for being back with us. So, let's start with those fed minutes that everybody was waiting for eagerly and they came The market didn't know quite what to do with him what did you make out of those minutes They confirmed what I suspected Which was that the fed ORG doesn't know where it is That the world is very ambiguous at this point And Of a meeting or a very poor way to convey Collective PERSON message Look the fed ORG has a fundamental problem About which it is not yet willing to be realistic And that is that it is exceedingly unlikely That inflation can be brought down to target levels Without a substantial increase in unemployment they To Very concerned about unemployment and about inflation and the reality is that it's probably not so realistic to think That they're gonna get inflation all the way down without getting unemployment up And they don't wanna acknowledge that and that forces a certain confusion Into all of their Understand FAC why they don't want to acknowledge that part of the problem is they've taken on an excessive obligation To So I think they're in AA very very difficult situation I don't know to what extent they're gonna choose to take the pain that is ahead on the stag side and to what extent they're gonna choose to take it on the flash Side Remains to be seen. I suspect in some ultimate sense, they don't really know. Either which way it's going to go, Gotta worry them. That Financial conditions are now Really looser than they were when the fed ORG last met And Middle of a tightening cycle Substantially loosening That has to make a central bank. Nervous. David there's one CARDINAL other aspect of the situation that I think is very important and under recognized What's happening with Russia GPE and Ukraine GPE what's happening with drought all of it they don't really fully internalize that oil prices and wheat prices have both come down substantially At our predicted to come down substantially in the future. Concepts of core inflation When headline inflation was higher than core inflation Can't stop doing that when headline inflation is lower Inflation And I don't see that we're really making any great progress with respect to core inflation i don't see it with respect to the wage numbers I don't see it with respect Median NORP or trimmed mean Measures Substantial Inflation challenge ahead of us.
Measures And so I think we've still got a substantial inflation challenge ahead of us. One of the things that Fed ORG emphasize in the minutes TIME besides really being concerned about inflation expect On the other side of that was a softening housing market. Something you referred to last week DATE on this program. Give us your ticket at the housing market. Some people say we're in a housing recession right now. I think you have to distinguish Movers NORP from stairs or to put a differently you have to Look at you have to think about what the right way to look at rents is. Here's what's true What's true is that last year People who were signing new leases We're paying 15 or 20% PERCENT more than they had a year ago DATE . Nothing like that Fatty into the consumer pricing decks or the feds preferred measures PCA ORG index All the fed through The small fraction of people who saw their rents change And a constant rent for everybody else. What that means is that down the road like now You're seeing inflation Substantial increases and so we're gonna see Housing price inflation in the measures of inflation that are used For another 6 to 9 months DATE that's a different thing than what builders are responding to builders aren't responding to that builders are responding to what they think the price of houses will be a year from now DATE and that come down and Building and that's what happens when interest rates go when interest rates go up in some ways it makes sense if we're gonna have Decline ORG in economic activity. And it's only the new flow that's being affected Van in Continuous basis That doesn't have any duration to it But I do think we're Chords In the future. With Different parts of the country as I say my best guess is that we will have a meaningful recession In the next 2 years DATE and if so, I think there's considerably more pain with respect to housing ahead. Larry PERSON , we're gonna talk about softness and slowing. We certainly saw that in numbers coming out of China GPE at the beginning of this week DATE . And I wonder what you make of the Problems PRODUCT . Relief the fed here on slowing inflation Probably will it it goes back to the issue we discussed a few minutes ago David TIME about oil prices and grain prices Maniac Chinese PERSON slowing Likely to be How much weight those should be given as we think about our inflation rate In this country but it probably is a positive on inflation. I think the larger questions How we see China GPE in the future and how China GPE will be responding to these economic Increasingly profound events.
Now for some time are looking like increasingly profound events in China GPE It was taken as almost axiamatic 6 months or a year ago DATE that at some point the Chinese NORP economy would surpass the American NORP economy Of total GDP at market exchange rates. Much less clear than it previously was. And I think you're seeing all kinds of challenges for China GPE . There's the huge financial overhang. There's the where the growth is going to come from. There's the growing communist party involve You know, wider range of enterprises. There's the demographic I have been saying for some time that I think people are gonna look back at some of the economic forecasts about China GPE in 2020 DATE in the same way they looked back at economic forecasts for Russia GPE that were 1960 DATE or for Japan GPE that were made in 1990 DATE . One here toward the end of the week DATE turkey central bank made a move to try to combat inflation by you won't believe this cutting the interest rate from 14 to 13% PERCENT there's a course as part President Erdogan PERSON 's theory of interest rate Practical modern monetary theorist. He is putting modern monetary theory into effect. So far it hasn't worked very well For him Or for the Turkish NORP people I don't think that's going to turn around And I hope that the misguided accolades of modern monetary theory in the United States GPE are watching. Okay Lori thank you so very much this Larry Summersville Harvard are very special contributor here on Wall St week. Coming up we all know getting older makes us slower and grayer but can it also make us rich That's next on Wall St Week on Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials What do you want to know today DATE ? Ask a question or visit search go to find answers now. Finally, one CARDINAL more thought. Getting old. It's one That we all have to do None of us wants to think about it And sometimes seems like some of the oldest among us may be the deepest in denial where there is Musicians like Mick Jagger PERSON still performing live on stage at the age of 79 DATE or sir Paul McCartney PERSON who's still going strong way past that age of 64 he wants worried about Or our political leaders in or nearing their 80s DATE like President Biden PERSON and Mitch McConnell PERSON and Nancy Snapped PERSON back at a reporter 10 years ago DATE when asked a question. Colleagues privately say.
Like President Biden PERSON and Mitch McConnell PERSON and Nancy Pelosi PERSON who snapped back at a reporter 10 years ago DATE when asked a question. Hey In 1984 DATE provoke the age old or should I say old age question Democra Only PERSON to come back with this zinger I will not make age an issue of this campaign I am not going to exploit Political purposes. My opponents, youth, and inexperience. The world of business and finance is an entirely immune from this but by Warren Buffett PERSON who at 91 CARDINAL shows no signs of stepping down and told our own David Rubinstein PERSON his goal is to keep Do I like to be the oldest man that ever lived actually And who knows maybe we don't really just get older. We get better. Was hoping that that may just be true. We now have a concrete, provable example, coming from the world of golf, where a journey and tour professional who'd struggle for years DATE , suddenly became Simply by turning 50 CARDINAL pushing him into Older player PGA tour champions league To be sure Stephen Alker PERSON from New Zealand GPE happened to be at the very top of his game when his birthday came around but according to the Wall St Journal ORG adding that extra year has let him In 1 year DATE $ three MONEY . 5 million CARDINAL which is more than he made in all the rest of his career put together And if he keeps sinking extra long putts like he did to win the Boeing ORG Classic PRODUCT . He may just be getting started. That does it for this episode of Wall St Week. I'm David Weston PERSON . This is Bloomberg PERSON . See you next week DATE . Tag on the product may read made in the USA GPE but Made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG Sacha Nadela IBM's ORG Arvin Krishna PERSON micron technology Sanjay Mehotra PERSON and that's Indians NORP running companies all over the world. Have so many Indians NORP risen to the top. Incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a Crypto You have a world of young people. That was.
Actually find their way to the sea sweep. Crypto Have a world of young people. That want their own financial system. And their own culture. And it is very powerful And I'm a big believer in it. The iconic American NORP car company GM ORG is in the midst of a dramatic transformation. We really feel general motors is moved from being an automaker to really a platform innovator. Middle of this decade and to phase up production of all gas powered cars and trucks by 2035 DATE With ED PERSON penetration still in single digits it's a bold bet on the future of mobility Shift to electrification and ultimately autonomous vehicles is probably The most transformative Thing that's happened in the auto industry maybe since Henry Ford's PERSON assembly line. It's monumental. We've got an industry that's it's really stayed about the same for about 50 years DATE the thing is different now we've got a confluence of what we call case connected to ton of shared and electric that are really new things in a quantum way to the industry That's where CFO ORG Paul Jacobson PERSON comes in With finances really being too full number one is making sure that we're supplying the information on how we think those decisions and that transformation are gonna project out financially and then number two CARDINAL is make sure that we get the right resources in the right place at the right time which can be challenging with so many different directions and so many opportunities ahead of us. He's Rather additive business Focused on tech. It's a focus. A company that's focused on revenue diversification and with that, there's a lot of margin expansion up ahead. You gotta be optimistic about the future, making sure that we're allocating capital into the right places to fund the transformation. For 90 consecutive years DATE general motor ORG sold more vehicles in the United States GPE than any other manufacturer that streak ended in 2021 DATE when japanese NORP rival Toyota ORG took the crown Still recorded record profits in Paul Jacobson's PERSON first full year DATE as CFO ORG and that's a good financial foundation for the task ahead. Are there any reds on that dashboard? Well, I think we live in a world that seems to be red for everybody, right? That's been one of the one of the challenges. I mean, since I arrived here a year and a half ago DATE , it's it's really been about the semiconductor challenges, the macro economic challenges, supply chain, etcetera. But That is just part of transformation, right? Not everything goes according to plan and you just gotta make sure that you set your sights on the horizon and make sure that we continue to track to it. I think the team's doing an extraordinary job. There's a lot of uncertainty out there and that's one of the things we have to manage. We're blessed with a tremendous balance sheet. The team's done an amazing job. Funding the pension, paying At which puts us in a position where I don't actually have an aversion to using the balance sheet to continue on our path if we need to temporarily Cheap shortages in supply chain disruptions have driven global car sales volumes down from their 2018 DATE peak but it may have long term benefits forcing companies like GM ORG to tear down silos and bring teams together to find solution We actually is a management team all the senior leaders of the company get together once a week and we've been doing that for a year and a half DATE to talk about here's what the forecast is here's what we're gonna do to mitigate it and here's how we're gonna respond and it's been one of the most amazing Examples of collaboration I've ever seen in in my career.
Here's how we're gonna respond and it's been one of the most amazing examples of collaboration I've ever seen in in my career. Functional leads or vice presidents that would lead a product development or design or sales or marketing or whatever that is You know, it's really, it's really, everybody's together. Our staff meetings are together. It's very, very much one team. And that's changed everything. We've already talked about how we are simplifying the chip And going to three CARDINAL chip families that's gonna put us in a position where we're not as beholden GPE to hundreds and hundreds CARDINAL of chips depending on which vehicle where any one of them might hinder production. So, lots of things across the horizons that we're doing to make sure that this becomes much, much easier to navigate in the future. The Global demand for metals used in batteries is already putting pressure on supply chains and driving costs higher. Now commodities prices for those That are like lithium like cobalt that are used in EV ORG batteries Sword GPE . Those materials also not are just expensive. They're generally in places that are have geopolitical issues. How do you address the things like lifting up and things like nickel. There's gonna be a shortage of how do you make sure you have that at a price could afford so you don't have a rapid spike up in the price. We're really looking at a multifaceted approach. Anything from traditional supply chain procurement type functions all the way to joint ventures or Term contracts. It's not about capturing the best price today DATE . It's about capturing that consistency of the business model that we can plan around and anticipate going forward to make it easier to to fund this transfer. But while Jacobson PERSON takes steps to head off headaches use also aware that Jim PERSON 's electric future holds huge I think the most exciting thing about the EV ORG transformation is it's fundamentally gonna change the way we make money in general motors because if you think about it the overwhelming majority of our profits come from the time that we sell a vehicle to a dealer right and and that vehicle enjoys a lot of revenue for very different companies over the Of other on the road. Electric vehicle and what connected vehicles are gonna do for us and is increase the revenue opportunities for us over the life of that vehicle second ORDINAL owner third ORDINAL owner fourth ORDINAL owner because we're gonna be able to offer ways through over the air updates to customize it subscriptions various services insurance packages lots of different ways that we can interact with the customer in Historically, we haven't been able to. How much of your top line total revenues gonna come from selling vehicles as opposed to the services that you've just been describing? So, if you go back to our investor day last year DATE , we talked about doubling our revenues while expanding our margins by 2030 DATE . The doubling of the revenues are coming both from growth and auto Because there's a big overlap and we're getting new customers every day DATE on electric vehicles the ones that were taking reservations in orders for right now so what we talked about is 20 to QUANTITY 25 1 billion dollars MONEY a year of revenue In 2030 DATE around these services that we can provide going forward so it's a massive growth off of what we've currently experienced with OnStar ORG historically and really excited about what that's gonna bring. Also expects significant growth to come from cruise. It owns 80% PERCENT of the startup that's developing autonomous vehicles. Despite considerably investment in advanced technology, the company has resisted the temptation to spin off these units so far. Is there a world can you envision as the chief financial officer a world in which you say you know it there's an old businesses and new business we should trade separately well there's a lot of commonalities between the business About 70 CARDINAL to 80% PERCENT of the vehicles are the same, right? They both need brakes, they need windows, they need features, inside the vehicle seats, etcetera. So, Everything that we can do to make the ice vehicles more efficient and more appealing to the customer is only gonna help us with our EV ORG transformation and that's why that integrated approach is so critically important to help fund that journey for us going forward. Since July 2020 DATE shares of North American NORP automakers have significantly outperformed the S PRODUCT and P 500 even
S and P 500 even after broader economic and geopolitical turmoil drag them down from their peak Across the industry and a lot of that rewarded by Wall St. The companies will now need to deliver on be prepared to deliver on that in a post supply chain world. A part of your job is to make sure that a wall street is getting the message that you want them to have about general motors. Where are you in that right now? Where is general motors in the perception on Wall St Accent to which it really is a tech company on the forefront. Yeah I think the challenge with what we did is we pulled out 10 year DATE goals that something that was kind of unheard of in the industry as well as as here at GM ORG and now what we've gotta do the next phase is make sure that we're giving a road map to investors out there to say here's what you can expect to see in the next 2 to 3 years DATE and as you see that you should increase your confidence that On the journey to get where we need to be in 2030 DATE . Monthly DATE which is fine. As we produce an execute the confidence will grow Nothing is going to to take us off track from that execution. We know we have the right strategy. So, that will come. This is about the long term. We're not running the company for the stock price today DATE . We're running the company for value creation over the long term and I feel like we've got a really really good hand to play. Coming up Paul Jacobson PERSON tells me what he's learned about GM ORG 's electric future from driving the brand new Hummer EV ORG . It's taught me number one you know what what are the concerns of the consumer that are ultimately in the driver of vehicles and then number two CARDINAL where do we need to focus on addressing some of those anxious points for people and we visit the lab where today DATE 's investments are developing tomorrow DATE 's batteries Chemistry ORG and say this is superior but can you replicate it millions and millions CARDINAL of times across the entire portfolio Bloomberg PERSON . Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. I'm David Weston PERSON . We think that's the next secular shift from businesses most influential and instrumental yes it's about renewables This is a level of uncertainty that we haven't had to deal with. General motor CEO Mary Barra PERSON and President Mark Royce PERSON are not only auto industry veterans their second ORDINAL generation GM ORG employees following fathers who both worked at the company Paul Jacobson's PERSON new to the car business he launched his professional career at Delta Airlines ORG including 7 years DATE as CFO ORG before joining GM ORG and December of 2020 DATE I started with Delta LOC back in 1997 DATE as a financial animal instead of business school and just had an incredibly blessed career there to be able to see and do so much and got to be treasurer through the bankruptcy which as a corporate finance person bankruptcy is
Just had an incredible blast career there to be able to see and do so much and got to be treasurer through the bankruptcy which as a corporate finance person bankruptcy is the best experience you've never hope to repeat but it gave me a really good platform and how to make deals and how to think strategically across the board. Mark Royce PERSON appreciates what Customers whether it be designed whether it be the actual vehicle of an entry itself the experience in buying experience at the dealer whatever that is you know committing Proven to be a perfect partner for that. Company that is 100% PERCENT focused on customer service and I had you know the opportunity to learn from Richard Anderson PERSON and then Bastion ORG on the finer arts of of leadership and and transformation and through a company that went through a lot here is very very different working for a manufacturing company is I I tell my wife all the time it's just It's amazing to be around people who build things. GM ORG 's transition to an all electric future is built on a proprietary battery pack called Ultium GPE . It's building four CARDINAL factories to produce the batteries while it retools four CARDINAL existing The objective to create a scalable platform that eventually drives down costs called Jacobson PERSON took me to the laboratory where this technology is taking shape So we're in the heart of one CARDINAL of our battery testing labs where we test all aspects of the battery resiliency hot extreme temperatures shaking vibration etcetera So we are investing a ton into battery So around us we've got the testing We're also building a new manufacturing cell manufacturing test facility. We're gonna test different ways of manufacturing cells cuz it's one CARDINAL thing to look at chemistry and say this is superior but can you Millions and millions CARDINAL of times across the entire portfolio. So, we're an execution mode. We're producing cells now at Lordstown GPE . It will be rolling those out soon. We're already have these cells and the Cadillac ORG lyric as well. But as far as Chemistry ORG goals. I think we're just a kind of the beginning of where where that might go over the long term. Do we go to solid state? Or or what? So, we're looking really at a portfolio approach to make sure we capture the Probability of being successful. So, as you go to scale, you have those millions of millions of time. The vehicle comes off the line, whatever that is. In the future, right? 10 years DATE down the road. What percentage of the cost of the vehicle will be just Well the battery and the motor systems are sort of the equivalent of the engine and the transmission today It is it is costing more obviously for for those systems going forward but we think that technology is gonna come Overtime as well which is why we've said we think we can get an electric vehicle to parody profit parody if you will by the end of the decade DATE with their ice counterpart. EB's may also be more profitable on the labor side at least in the manufacturing phase. Parts that are different in a nice versus about There's 40% PERCENT less labor hours TIME in the in that the assembly of a pet Fundamentally there's 40% PERCENT less labor needed. Command a premium. We're seeing auto companies on the engineering side The marketplace competing for engineers that they're competing with video game companies so silicon Valley LOC companies a different kind of engineered software engineers are you know really needed There's this big competition for back kind of Employee and and attracting them to the auto industry which is in considered you know an old rust help industry We've been hiring really aggressively over the last couple of years DATE in software in chemistry in in just broad engineering across the board and what we found is people are attracted to
Couple of years in software in chemistry in in just broad engineering across the board and what we found is people are attracted to coming to If I think more and more today DATE employees are focus I wanna work for a company that shares my values. And when you look at what GM ORG is doing in our pivot through electric vehicles. We find a lot of people wanna be a part of that. Us GPE car buyers are also getting with the program sales of fully electric vehicles group by 85% PERCENT from 2020 DATE to 2021 DATE with Tesla accounting for three CARDINAL of the five top selling models Might be the biggest. Think of the reasons why people avoid an electric vehicle now Four CARDINAL of the top five CARDINAL reasons are related to chart Charging infrastructure is steadily improving but consumers still worry about being stranded without power on road trips Paul Jacobson PERSON assured me that when he takes the new Hummer EV ORG on long journeys it's not just fun to drive it's equipped to go the distance I hear so much about road trip anxiety that I wanna do experience it myself my family likes to drive a lot so I brought my daughter home from college in this and and it was great I mean the computer system is all intuitive it tells you how to keep track of the battery it tells you where the charging stations are it tells you how much power you'll have when you get to the charging station so it really puts But as far as driving it, it is, it's a treat. So, where are you on the charging stations? I know general owners has made an investment and one CARDINAL company. How are we doing in this country generally and getting charging stations in? So, I think this is this is an area where obviously we can we can To improve as a country in a society. We're doing our best. We've committed almost a one 1 billion dollars MONEY to EV ORG charging. So, we've we've taken that and looked at home charging solutions, local community solutions, and road trip charging solutions. What? You know, with my daughter, what we would end up doing is Plugging ORG it into a charger usually a high speed charger. To get as much charges as we can. And being there for 20 to 30 minutes TIME . Get us a lot of range and by the time we've used that range, retired, ready to stop Etcetera ORG . So, it was it was a really good experience for me and it's taught me number one, you know, what what are the concerns of the consumer that are ultimately in the driver vehicles and then number two CARDINAL , where do we need to focus on addressing some of those anxious points for people? Up next the battle for EV ORG supremacy maybe one or lost in China GPE call Jacobson PERSON thinks GM ORG is ready to take up the challenge World is competitive, right? And and the world of electric vehicles is only gonna get more competitive. It doesn't matter where you're operating in. He reflects on how the role of the CFO ORG has changed over the years DATE . Today DATE 's CFO ORG has to be much, much more than a bookkeeper. Has to be a strategic business partner at the table, helping to see around corner, and helping to prepare the organization for what could happen. This is Bloomberg Ken Griffin PERSON is moving both sit it out and send it all security is to Miami GPE the scooper's broken by Bloomberg PERSON 's Amanda Gordon PERSON When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Katrina shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. Roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement? To help reduce the emissions from these well stocked maritime behemoths. In 2021 DATE .
In 2021 DATE despite COVID lockdowns and supply chain breakdowns general motors delivered near a three 1 million QUANTITY vehicles in China GPE and since China GPE still taps the global market for electric vehicles Introduces ORG new EV ORG models. China GPE 's role frankly is is a big role in big volume for us and all of our brands and as the landscape changes really rapidly to EVs in China GPE . You know, we're ready. We've got great JB partners. We do own the brands in China GPE and so we've got, you know, good brand representation in the Vehicle and then also we've got the flexibility and something like our Ultim ORG architecture for batteries and cells that is flexible enough to handle the requirements of of a prismatic cell like CATL makes in China GPE Favor some companies over other companies is that a risk potentially for GM ORG because you have some Chinese NORP native companies where I can put that way like a BYD we believe we're in a good position At the end of the day DATE , the world is competitive, right? And and the world of electric vehicles is only gonna get more competitive. It doesn't matter where you're operating in. So, we need to focus on the quality and the customer offerings that we have. In regardless of which market we might be There's one CARDINAL thing everyone agrees on when it comes to selling vehicles in China GPE the future is extremely difficult to project China GPE 's been interesting because you know they had They shifted and sentives from being a consumer based incentive to being a stick On the industry with trading such that's greatly favored Start up. And it's been harder for the traditional automakers both domestic and the western automakers of foreign automakers there in terms of the the subsidy and the this stick and carrot Forward in China GPE as to what China GPE looks like in 2030 DATE . Paul Jacobson PERSON tends to view the future with a healthy blend of optimism and pragmatism I asked him to look ahead at some big picture issues. Over the next 10 years DATE excites you the most about opportunities for general motors. I think the most exciting thing over the next 10 years DATE is we don't know about all the opportunities to generate revenue and serve the customer. So, I'm really excited about that. Okay, what are the next 10 years DATE ? Make sure most nervous. I'm not sure if it keeps you up at night but heads in that direction. Yeah, I think the thing that keeps me up at night The next 10 years DATE is just thinking about the macro landscape. The world has just changing so rapidly. We have a lot of competitors coming at us and you know, we're gonna meet those challenges but we don't know what the world's gonna throw at us. We gotta make sure that we are very nimble We've talked a lot about the changes coming for general motors as you look at your job and see if how will that job have to change because of those changes in the move to EV ORG 's. Well, I think as as you think about any CFO ORG not just the moved EVs but just the move We don't have time to look back over what happened last year DATE or last quarter DATE . What happened last week DATE ? What happened yesterday DATE ? How's the business performing? And how do we get real time information to the business leaders? Over the time that you've been to CFO ORG what has changed most for you what skills have you had to develop Well I think you know as as as I'll see if I was experienced you get you get much much more ingrained into the strategic side As I said today DATE 's CFO ORG has to be much much more than a bookkeeper. Has to be a strategic business partner at the table helping to see around corners and helping to prepare the organization for what could happen. If somebody took the job to see if I at some company today DATE what would you advice them number one is listen right I I think too often see if those are are there and their view is the people are there to send out Right I I like the challenge our team to how can we find a creative way to say yes how can we find solutions and ways to make things more efficient not just for goats
They're the same now. Right? I like to challenge our team to how can we find a creative way to say yes? How can we find solutions and ways to make things more efficient? Not just forgo them. In Louis GPE something else. That can sometimes be hard for us. We're all naturally skeptics. That's what tends to do attract people Finance ORG business. So, how are you skeptical with a good vent towards it to helping people accomplish their goal? Finding creative ways to say yes if Paul Jacobson PERSON and his team can do that GM ORG will be well on the way to delivering on its grand vision of transformation I'm David Weston PERSON Is Bloomberg PERSON In the coming months DATE do you see that coming true Resources from more than 120 CARDINAL countries 24 hours TIME a day. Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. There's an old saying in finance that cash is king but when it comes to payments the data suggests that no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of interest in
But when it comes to payments the data suggests that it's no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of in person transactions around the world Came and send it straight from the beginning cuz has really focused on getting To use electronic forms of of pain. In fact, if you look at like the US GPE , for example, Basically have been moving around two CARDINAL to three% of payments from cash and check to some form of of direct electronic just about every single year DATE . So yes we are moving towards the cash flow society A new technology is promised to kick these trends into a higher gear. The terminal on the till of the merchant. Depending on how old one is. One is used to that. At least then and the developed world. That is not everywhere but every one has a phone So electronic payments can end up in a super simple way and everybody's hands and for our business that's a massive growth of opportunity MasterCard ORG is already seizing that opportunity. After In 2020 DATE revenues shot past pre-pandemic levels in 2021 DATE driven by a rebound consumer spending. See if Osach GPE and Meher knows that this boom is likely to fade. And he's set on finding ways to keep the momentum going. Being successful in this kind of environment is to have a diversified portfolio. You gotta be nimble from an expensive standpoint. You gotta be very disciplined. As a finance officer, what I've gotta do is I've gotta make sure that we are investing in those resources Which are currently in demand from a customer standpoint but at the same time not losing sign of the long term. CEO Michael Niebach PERSON counts on Mayro PERSON to do more than just oversee the balance sheet. The top line for me is Visor PERSON and confident. Conciliary. Yes. You know in the past it was more of a function of you know let's make sure the numbers are good let's make sure we get a great control environment let's make sure we're actually able to close the books on time let's make sure we've got The financial elements of the business in order. The job of the CFO ORG in in our view in my view is a function of making sure we're creating the right linkage. What the purpose of the businesses, what the strategy of the business is, Delivering on the financial returns for the company all while driving long term shareholder family. We're in the business of leading beyond the numbers. It's great that we know what the numbers are. How do we use those numbers to better drive execution of the business to accomplishment of the strategy of the company Mastercards Corpus PERSON is no surprise cards. Carded products currently account for over half CARDINAL the company's revenue. The company said ambitious growth targets it as 2021 DATE investor day. Committing to expand this core and to diversify beyond it. We've been on a 6 year DATE strategy to be a multi-rail company in plain English LANGUAGE that means whichever way you pay people enable that despite the fact that card is in our name it's essentially any type of payment we have the reach so I think we're reasonably well positioned I mean you've just gotta Not only where the consumers today but where they're gonna go because a lot of what we've gotta do takes time to implement. And is it difficult you'll get some you'll get it right sometimes you'll get it wrong sometime but hopefully you're getting it right more often than you can get wrong and you're working with through that. Forecasting preferences is complicated by an uncertain economy consumer confidence has been plunging to historic lows and recession calls are getting louder still a slowdown isn't likely to cause a crisis for Mastercard ORG in its peers. Free to watch people often perceive I think famous as an industry it will be quite resilient in downtown Generally speaking Even during.
Even during a recession, the amount that consumers spend actually does not go down. It continues to grow. I think the thing that people are worried about more in the payments industry is kind of how does the mix of spending change? The first ORDINAL thing is that typical Happens PERSON if you're going into a session in the moment is people tend to pull back on discretionary galleries or spend they move into the non discretionary categories of spare. Pivot into food. They're pivoting to rent. Those kind of payments. Which are most important for them to meet. But the real still stay the same. So the real which rang debit and credit are exactly the same. The technology is the same. The distribution models the same. So those those areas don't necessarily change by virtue of moving into more for debit or credit. One CARDINAL area that master card has been moving vigorously into is BtwoB ORG payments a market expected to reach 25 1 trillion dollars MONEY by the end of the decade DATE Tremendous promise and the BWB ORG area the card business as in the the elements of the B to B space which are served by cards. Are doing well. Are they doing very well? And it's in the small business space and the mid market. It's in the large corporate space. All of them do really well. On the accounts people side I would say we're in the build fees. And Whereabout building and open loop environment to enable payments on accounts payable rails. Where is the opportunity in that space is? Different to consumer payments where there is a global standard the global standard is MasterCard ORG the global standard ah card payments because that's been established that is in quite established that and be to be And I think the more benefits we bring into the payments that are easier than just making a really complicated cross border payment I think we'll find our way there and we're gonna see and explosion of creativity a lot of other companies Pursuing new opportunities takes capital Mastercard ORG has spent billions CARDINAL acquiring companies that add capacity and diversified its infrastructure Acquisitions ORG and partnerships have helped mastercard offer more value added services to their clients tapping into a lucrative revenue stream What we call services which includes data insights consulting manage services loyalty and our fraud capabilities is roughly 35% PERCENT of the revenues of this company. Wow. Yeah. So, it's not insignificant. So, often times, people think mask department think god. Very important but there's a very different part of Mexico GPE as well. From a balanced perspective, MasterCard ORG has maintained a healthy leverage ratio even as it's put more resources into acquisitions and taken on more debt given the company of flexibility to continue investing. We don't go in and say, well, right now, valuations are lower than they were a year ago DATE . Let's go Something. That is, that is an opportunistic approach and doesn't work for us. For me, it always starts. What are we trying to accomplish from a strategy standpoint What are inherent capabilities we as a company have What are the gaps in order to capabilities to meet that strategy and then follow those gaps is the best to build Or partner. We're out there and we're trying to find the right companies together and it's gonna make sure that we have a clear view on short and long-term synergies and so forth. And to investors to explain what we're doing and why we're doing it and why it's good. Shareholders have reason to appreciate MasterCard ORG 's capital allocation strategy. It's included annual DATE share buybacks and steadily increased dividends. How do you prioritize the amount of money that you put toward innovation and toward building out different businesses versus share buybacks and dividends because master parties traditionally had rob Program in rewarding shareholders. Right. First ORDINAL call of capital is towards growth of the business After we have done that it's about making sure we're being good towards the capital and returning excess cash to shareholders with a bias towards shareby backs And then once you start to come to say I have dealt with my strategic priorities I either have invested in my organic growth or in acquisitions then access cash we will return back Buybacks over dividend because it gives a small flexibility but that's been a good model for us. It's been working well and it's been well received by the market. Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not What it's really beautiful.
By the market Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not What it's really made a difference on has been in terms of how it's driving a shift from cash to the payment particularly on the small ticket items and later how Card ORG is staked out of place A cryptocurrencies. In the crypto world we play the role as an on ram. This is Bloomberg PERSON . Bloomberg PERSON brings you the headlines first ORDINAL . The first ORDINAL time next on every top and bottom line metric apart from one. It's really a story of strength. Plus, expert analysis to keep you informed. Is concerning. Indicates maybe a recession is coming. Bounce back coming in next year DATE . Such a mirror joint mastercard is group executive in corporate treasure in 2010 DATE over the next decade DATE he took on several different roles before being appointed chief financial officer in 2019 DATE that's a very different path than the one he started out on Hey undergrad there I worked with the family business there it's a textile business which my grandfather started and my dad my uncle took over and then my brother and I got into and I worked with him for three and a half years DATE then I came here for business school. The moment of truth came on graduation day. My dad got on the phone. My brother was older than I am went to business school as well and went back home and worked with my dad. Got on the phone. Congratulated me and said, Susan PERSON , what are you gonna do with your life? And I'm going, well, why are we having this discussion? Dad PERSON wants me to come over and work with the family business. He's like, yep, that's what dad wants you to do. Hey give him a chance I'd love to work in finance in in the US GPE . Mary took the chance even though it took him 6 months DATE to land his first ORDINAL job at General Motors ORG where he worked for over a decade. Then it was on to the energy industry it has Before finding his way to Mastercard GPE . Today DATE my dad couldn't be prouder of the fact that you know I chose the path I did Obviously he misses the fact that we're not there as a family but that's just part of life right we all gotta grow in Blossman GPE groom Accepted at the beginning. Took him all 30 minutes TIME to get there. Campus it's clear that is Well, more important, more fun stuff. What's the plan for the weekend DATE ? And of course the cafe provides a demonstration of the tap and go technology that's changed the game for payment companies Could I just go to regular coffee with help please? Yeah. Okay that would be 571 CARDINAL . You got it. We're gonna make this work. There we go. I think contactless is a very powerful catalyst for accelerating In the last 2 years DATE what we have seen in the US GPE is god penetration guru treat annually DATE has doubled What was the average 5 years DATE the pandemic was one of the reasons people didn't want to touch E-commerce purchases, the contact list definitely contributed to this. It's really made a difference what it's really made a difference on has been in terms of how it's driving a shift from cash to that 24 CARDINAL payment particularly on the small ticket items Really, really important cuz at the end of the day DATE , our model is as much about converting the dollar value of the spend as it is about the number of transactions we can get over our network And even though it happens to be a $ two MONEY transaction, a transaction, a transaction on which we make revenue. On which we can deliver services and that's really important MasterCard ORG introduced PayPal ORG it's first ORDINAL contact list payment system in 2002 DATE but the technology took some time to gain traction I would say we post invested in this many many many many years ago the adoption rate on this in the early part even in markets like
What's the next one I think Smile ORG . Biometrics I think that's where it's gonna go. I think we've reached that point of people are sick of too many passwords. People are sick of typing in stuff and there's also too many wallets and other ideas and stuff that is around. Everybody has a smile. So, just play with your smile. There you go. How much are you investing in that? How quickly do you see that becoming the next tap and go? Yeah. So, look, I think this is gonna take a while. These things haven't adoption go which typically is fairly flattened the early part and then you start to see some level of skiping. Mastercard PERSON 's next breakthrough may The company has opened innovation centers in Australia GPE , India GPE , Europe LOC , Canada GPE , and the United States GPE . These are Where we draw in customers where we draw the local community. We have them in big cities where the latest technology is the players are all around us. In New York City GPE , it's in tech alley and everybody in the tech industry is around us. It's a point where people wanna work and be attract the best talent and we go and this brings us back to the CFO ORG . We go So how are the revenues looking? What is generated from new products? What do we see? Is there real momentum? Is there real growth? And if you overlay that and link that back to our tech hubs in these regions where we have them clearly that is what driving what is driving our new solutions. Woman investment standpoint we try and make sure we've got our foot in the door and all of these new and emerging technologies cuz what we don't wanna do is play favourites with one CARDINAL versus the other we wanna make sure we're investing just appropriate amounts of money to have skin in the game to know that if this thing has got legs to it we wanna be at the inflection point for them to In your tech hubs can you act like bond James Bond PERSON what are the queue movies and like the laboratories we walk in and they you know you sort of face off and clear the system and they serve to this Revolution this company who can do that now everybody No that's not me Coming up how master card has embraced the brave new world of cryptocurrency with all its ups and downs. So long as we follow our principles we think we're in really good shape. In such an mirror tells me what advice he'd offer a CFO ORG just starting out in the job. I think it's important to stay calm. I think it's important to recognize that change is going to happen. You can't fight change. This is Bloomberg PERSON . Back in 1997 DATE I was interested in the following question which is there are a bunch of the dinosaurs called Sorapod Dinosaurs PERSON which had really long skinny necks so apostoras is an example Also really long skinny tails. So, I made a computer model that showed that in fact the tale of these Sorapod NORP dinosaurs could actually act like a whip. A bullfit. There's a way of bullet makes that cracking noise. Yeah Is because the tip of the whip actually goes about twice the speed of sound. Okay. And that crack is a sonic boom. Yup By making loud booms. Over the past few weeks DATE has made it clear. It wants to go higher. It got a little spook by the idea that due to political potential Like many of its counterparts and the payments
Like many of its counterparts and the payments and financial services industry Artist developed products and partnerships that bring cryptocurrencies into its networks. From the payments and payment system perspective the the Players and and members that make up that ecosystem are really agnostic. To them, crypto is just another current literally. Just another asset. Point Still so small. Very early If I'm a hard company it's better to invest Partner with some of these companies for future revenue growth rate versus kind of sitting on the sidelines. Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins. Also, digital assets like bitcoin. He's volatile valuations is acceptability to fraud. Have raised plenty of anxiety among investors. MasterCard ORG 's long-term plans to stay in the space haven't wavered. We're not really in the crypto hype of investment investing around could we like the fundamental technology and the promise that it brings to solve problems that have not been solved so if we see more revenue coming out of B to B solutions that leverage blockchain technology for example. Tokenize the bank deposits. You know, just to throw out one CARDINAL example across border payments, whatever it might be. In the crypto world, we play the role as an on ramp. So, people use mask card products to buy crypto. Our debit card products. So, that's the on gram If people wanna spend money as in fear currency to buy crypto and react as the off ramp and the offer ramp is when people want in cash should We help them actually gain access to be able to use their crypto balances everywhere master cuts accept it we engage with central banks on central bank digital currencies we engage with governments on how a policy could look like how regulation could like look like Engage with the startup community and say come on in let's sit around the table in one CARDINAL of our tech hubs and be discussed what what solution actually is needed by whom and how we can bring it together they have the greatest idea but the greatest idea it's a path to scale that's what we can bring is there a potential liability because of volatility because of Bitcoin and certain other cryptocurrent currencies have been painted. Is there any liability for Mastercard GPE ? Yeah. Well, too long as we follow our principles, we think we're in really good shape. And the principles we care deeply about our Stability as instability of the currency in question Point number two CARDINAL it must meet consumer protection requirements. It must meet the laws of the land. And this is not new news to us. We've done this in the space for the last 50 years DATE . For everything we've been working with regulated financial institutions on. And so which is why when we got into the space the first thing we did was to find principles and we will keep abiding by the principles and what we do. I feel happy because we're in the discussion Was shaping that ecosystem And then 1 day it'll look like we'll be having done in many other spaces over years of the past years DATE . Strategic and financial decisions that shape the business. I wanted to know what he sees when he looks ahead. What's the opportunity for MasterCard ORG in the next 10 years DATE that most This still remains a very sizable consumer payments opportunity Stand very well poised to actually capitalize on. This is the trend of the shift from cash to electronic forms of payment. If you think about it globally, there's still a ton QUANTITY of cash. Which remains to be electronified. And that that opportunity is huge. The second ORDINAL pillar for me is around Identified ORG over the past few years DATE a sizable total addressable market in what we call new payment flows. Bucket PERSON number three CARDINAL is around services. It goes back to our insights, analytics, our broad management capabilities, and everything we're doing that space. And then the last piece around you networks. Which is around open banking and digital light entity. What are some of the challenges for Mastercard ORG over the next 10 years DATE that keep you up at night TIME ? On what's going on for my technology innovation.
Thank you and digital entity. What are some of the challenges for Mastercard ORG over the next 10 years DATE that keep you up at night TIME ? Locked in on what's going on for my technology and innovation standpoint and making sure we're leading from the front not turning our back to it and saying we're gonna walk in the other direction we've got to engage with people who could potentially be Mediators competitors to let them know what value we can bring while they're executing on their strategy. So, that's number one CARDINAL . Number two CARDINAL is Look I mean the world is getting More and more into a regulatory environment where regulation regulators are playing a bigger role. Nationalism is playing a bigger role. It's important for us to continue do everything we're doing by being deemed local. It's important to be a global company but be deemed local and that's gonna be important for us to execute on. At the end of the day DATE , sitting in my role is the CFO ORG . Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on execution and that's what we do every day. What's the biggest change that you see a role having over the next 10 years DATE ? Predicting that much as it relates to how it's gonna change what I can see happening is greater emphasis on making sure Leading from the front on executing but also failing fast and that's where a CFO ORG can play a big role And by that I mean You're not always gonna win. There are things you're gonna do. Hopefully you get more right than wrong. But recognizing things which are not working out. And making sure you actually feel fast on them and get out of them. Because you can get you can fall in love with stuff. Keep doing it. Keep wasting resources. Don't need realise that it's not gonna pay off. And I think the emphasis around that is Only increase for that. Capital resource environment. What advice would you give a CFO ORG today DATE ? Hey I think it's important to stay calm I think it it's important to recognize that change is going to happen you can't fight change What really matters is how you can get up and actually deal with that change. That's super important for a CFO ORG . Being really clear and crisp in your communications. The outside world wants to hear in very simple terms. What exactly this company stands for and why they should believe that you are a good investment. I noticed I've said nothing about financials and I've said nothing about necessarily financial infrastructure and systems because I do believe as a CFO ORG . Those things are table sticks you've gotta make sure that stuff happens you gotta level technology you gotta drive efficiency in the building you gotta get the numbers right you gotta have a good controlled environment so what's gonna call you apart is the is the other elements which I spoke If MasterCard ORG can meet ambitious goals for growth in its core business Deserve PERSON a lot of the credit. This is Bloomberg PERSON . At some point you had to fight for the trademark right for the Red Soul PRODUCT . Yeah. Is that stressful? Very stressful. Very stressful. You know I'm We are a small company in a way and to have to fight people who have those huge companies who put you 27 CARDINAL lawyers on your back or something which is yours is very stressful. I mean, I wish it's I wish you didn't talk but Hey I'm happy about But it's done. Realize that the time when you start the company that you would become so successful Actually so big. No you know when I started the company I wanted to have a shop in Paris GPE which is my hometown and I wanted to do pretty shoes for pretty girls that was my girl I know you look back and you say actually I still made pretty shoes but for many more women. Yeah. Absolutely. Do you think you would have So successful without the red soul. To my work but also to the fame of my
So successful without the Red Soul LAW . To my work but also to the fame of my shoes because it's instantly recognizable but then you know the design is very important but definitely when you have such a strong sign of recognition you Based to yeah. Big expensive cities have a lot going for them but if you live in one you probably notice that these big expensive cities keep getting more well You could always move away So, there's really nothing keeping you there. But then again, moving is a hassle. Well, what if someone paid you 10 grand to do it? What if they threw in free office space? A bicycle or a gym membership Programs WORK_OF_ART and cities and states around the US GPE are doing exactly that and they're Lot of interest. We've had over 50 1000 CARDINAL applications about 90 1000 CARDINAL applications. We've had over 1800 CARDINAL applicants from all over North America LOC . So are these nation programs actually beneficial to their communities and the workers joining them or are they little more than flashy advertising campaign Places looking for an injection of fresh talent. When US GPE inflation numbers are released Terminal speed. People are going full risk on. When do we get back to boring inflation? What is your base pace for Italy GPE in terms of what happens Global economy is changing as the world recalibrates. Japan GPE 's leaders are forging a more innovative and sustainable path forward to revitalize the nation Giants ORG policy makers and pioneers tell us how they're doing just that. Every week DATE on Japan GPE ahead right here on Bloomberg Television ORG . So Life you're the CEO of Roblox but on Roblox you're builder man. You know that name we just started up 2 weeks DATE after we launched and we're all picking our own usernames Everyone picked one I just said Since 2004 DATE . That's right. That's awesome. Do you still play? I wish I could play the whole day. I have to be a CEO. So, how often do you play? I'm probably on it every day but not as much as I would like. I have four CARDINAL kids. I have a nine-year-old DATE son who's on Roblox a lot. He said, his favorite games are the Tycoon games. Oh, lumber tycoon theme park tycoon. I love those. I love all of those. I have a bit of a theory I have four CARDINAL kids. Oh, you do. Yeah. They've grown up watching me do this. Yeah. Another, they're pretty savvy, social media people, but I'm optimistic someday. They're gonna be using Roblox PERSON for some other reason. Like communicating or more working or something like that. And then they're gonna be, oh gosh, it's like Forest PERSON to be on Robox GPE . It's a Port Monto of robots and blocks where users can build and play games in a 3d world. Roblox has boo into a global online gaming juggernaut that Are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact roblox was building the metaverse long before Mark Zuckerberg PERSON claimed a new name for Facebook. But what does the future metaverse really look like and how do we cultivate a civil digital society within it?
Long before Mark Zuckerberg PERSON claimed a new name for Facebook. Really look like and how do we cultivate a civil digital society within it that keeps kids safe? Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roadblocks CEO and co-founder David Bazooki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be with you. Well, I'm a parent. I'm a mom and so I'm been really excited. To have this conversation. For parents and anyone out there who still doesn't quite What exactly are kids doing on Rob Yeah PERSON kids on Roblox aren't just playing. They're learning. They're hanging out together. Can't be together in real life. They're hanging out on roadblocks. They could be playing hiding goes sick. They could be pretending they're running a store or a pizza parlor. They could be making the next big game or adventure So, it's really a wide range of things and it involves doing things together, pretending you're together. So, right now, it's mostly Games or experiences four CARDINAL kids buy kids how old are these players how old are these developers we have young players who are getting interested in coding who are getting interested in designing things but more and more the community on roadblocks has blossomed into this super rich System ORG . Thousands CARDINAL of developers making a living on the platform. Some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year. So, how many of these developers are really kids and how many of these developers are now Yeah well think two 1 million QUANTITY plus developers a lot of them are grown ups and more and more in addition to the natural organic people that started on roadblocks we're starting up studios come in on the platform as well Game developers who are developing on other platforms starting to take a look at it so our developer demo A little bit older although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, muscl Does that change the dynamic of the plastic? I I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform forever by one CARDINAL of our early developers. It's not the kind of thing that I I think a normal studio would ever think of but when developed by young creator, you know We're gonna be we're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it. There's gonna be a lightning storm. Like that kind of stuff. We see a lot of that creative game play coming from the younger developers. Who went to as a kid? Were you a gamer? I was kind of a nerd when I was a kid. I was studied really hard. I luckily grew up in Eden Prairie LOC , Minnesota GPE at the time it was out in the boonies from Minneapolis GPE , Minnesota GPE . There were sandpits and We did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods that one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time and that kinda got me interested in this I also heard you were the captain of your high school TV quiz team. Yeah, so think of think of Minnesota GPE in the 19 And 80s DATE where every weekend DATE two different schools compete four CARDINAL students from each school you know in a really funny four CARDINAL by four CARDINAL configuration on a quiz bowl thing as well yeah eating purri had Good quiz ball team. You eventually made it to Silicon Valley LOC . Yeah. You went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid and you coming to life. You know, went to school, had a couple hard years DATE with jobs that weren't really that exciting, took a few months DATE off, and I got really excited about there's this whole blossoming educational software marketplace at the McIntosh ORG . It just been introduced and it was just really interesting, exciting. I did a survey of all of that and a lot of the educational software So when we looked at physics it was a whole different idea could we make a wide open labratory we could build anything any physics experiment bring it to life measure it see what it feels like you sold that company made some.
I'd open laboratory we could build anything any physics experiment bring it to life measure it see what it feels like you sold that company made some money became an investor and you invested in Oh, yeah. Wow. I I had a friend through account. I'm dating myself a little bit. But I had a friend to account. I'm curious what you learn from the early days DATE of social media. Yes, so one thing I learned is it was really fun to invest but it's not my sweet spot. Like my sweet spot is trying to build and create things. I remembered, I think Account number 79 CARDINAL on friends. They're and just seeing that wonderful thing of finding other people, friend of friend, playing around with that early user interface. It's a little bit almost thinking of interactive physics where we were simulating the world and then friends, they're seeing how important Those are a couple of the components that have come together in Roblox PERSON . So, when you start a Roblox in 2004 DATE , what was the idea back then? The feeling of this new category for me started feeling almost inexerable. It's We've seen futurist talk about it. We've seen a lot of movies. We were thinking yes, immersive threeD co experience. Kids flocked to Roblox PERSON during the pandemic. You went public in the The pandemic 2021 CARDINAL 45 1 billion dollars MONEY market cap we spoke on that day even you have said that kind of growth won't keep up what kind of growth can we expect from roblox in normal times we believe it's gonna Part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school. How people. So they're gonna go to school in Roblox PERSON . If I happen to be taking my science class and I can't get into the classroom and we're dissecting a frog. We'll probably dissect the frog in something like Roblox PERSON and a sim Which I think is gonna be very very powerful and for our company where there's a lot of people that are gonna end up working all around the world some of us will be in the office some won't having a common threeD place where we can have those water cooler conversations where everyone has a desk but we get that serendipit Thing where we both happen to go over and chat. I think also is gonna be very big. Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. Universally important to human life asleep mystery surrounding its necessity and utility have only just been recently uncovered some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understand It's easy to memorize things that makes you smart if you can spit it back a lot of back but if you wanna be wise if you really want wisdom you gotta know when and how and why to use that information And that's what your brain figures out while you're sleeping. Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built. A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in this space.
A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in the space that I think is ultimately got so many years of growth to it and is a new category following other types of technologies. There's still so much innovation to be done and So much invention to be done in this category. That's mind boggling. The critics think that metaverse the term is just marketing. This type of technology is much more difficult than the net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zuckerberg PERSON announce Plan to Change Facebook's name to Meta ORG as if it was something new. Did that kinda bother you? No, of course not. It's really hard to predict in five to 10 or 20 years CARDINAL . Companies that really figure it out and there's so many elements of innovation that are needed. Having a UGC ORG community, one CARDINAL of our strengths. We think that's like a huge starting point for us, but we're early in our quest for innovation here. Roblox has built a huge business selling Does this evolve into a much bigger marketplace? Revelation that people would ultimately make a living on platforms like this that started this digital currency is very roadblock centric and that we're a systems company or utility so it has form this robust economy it's allowed us to keep robot you know Roblox PERSON is free for the vast Would Roblox ever partner with some of these other companies working on the Metaverse whether it is Meta ORG or unity or epic or Microsoft ORG ? The core technology of, you know, how are we gonna ultimately support 50 1000 CARDINAL people in real time on a Going to a concert together and waving at your friends. I think that's gonna be a lot of engineering work that each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one CARDINAL place to another? I think they'll be lightweight ways of starting to think about that. So, what role Think apple and android should play in the metaphors and and would their policies need to change to really support this vision. We would take advantage of if it were to happen is a change in those store fees. We we stay out of it. We like google and apple kind of run their businesses but when we think about more and more developers making a living on platforms like us and having to build stuff. If those stores were to change, we would move most Money back to our developers. Your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yeah. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job In the third week DATE , when we were live, you can go imagine Eric PERSON and myself back in our small office. Eric PERSON and I said, oh my gosh, safety and civilities. It's we're gonna have to do. We had maybe 100 CARDINAL people at the time chatting on roadblocks. We saw a few not that agreed just but early signs and we just made the call. This is gonna be The foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes on our platform gets human reviewed we filter texts very stringently especially for And under players. We use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us. Optimistic are you about AI and tech being able to do that I'm really actually optimistic we would never compare to the real world because our standards are so much more stringent but I do believe this will just keep getting better and better and I think over time it'll get to the point where if a 6 year old DATE is on our platform it's literally If the parents wanted to be there with them watching everything will be able to offer that type of thing no a lot of parents are terrified they're terrified of a future metaverse they don't understand the parental controls do you understand that feeling we do we actually have to I think it creates a Stay under.
A future metaverse. They don't understand the parental controls. Do you understand that feeling? We do. We actually have to, I think it creates a higher standard for us because I think we can't assume every parent is gonna get Involved PERSON with their kids. There have been some serious content challenges, you know, Stories about Roblox being a playground for virtual fascists. What? Kim Kardashian's PERSON own child Sex tape of her. That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in the off our platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention. But very unfortunate and Well, you know, our vision is to be the most civil place for everyone. This question about kids and tech habits and screen time and he said it's something that even stresses him out. You know, this is the guy who runs one of the most powerful technology companies in the world. I have four CARDINAL kids. You have four CARDINAL kids. Did it stress you out? Like, how did you deal with your kids? How much it's a responsibility of both platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more like hanging out together. We're being on the phone together or doing stuff together Lot less of it is isolated either consuming content by myself or grinding away at something by myself so we do like the fact that most of this is either We're involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? Do you see that? 24 hours TIME a day. Bloomberg PERSON your global business authority. Mobility. So, we have flick to switch there and really we're going to step by step electrify everything. And what does that mean? Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars oh look way out like a science fiction writer and talk about What I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like meta horizon worlds PERSON ? Is You know, more experiences like that for adults. We sometimes think of roblox ultimately as fading into the background as a utility like the electric grid. Even those photo realistic and there's all these awesome avatars and connection and identity around the world. The things we start seeing built on this are wide Of things. So, you imagine this not just for kids but for everyone. Adults too. Okay. Absolutely. What about entertainment? Would Roblox ever make a Netflix PERSON show? We would love it if one of our developers made a Netflix PERSON show. So, we would, we would feel much.
Absolutely. What about entertainment? Would Roblox ever make a Netflix PERSON show? We would love it if one of our developers made a Netflix PERSON show. So, we would, we would feel much more authentic if one of the creators on Roblox PERSON who's coming up with avatars and stories and ideas and characters like that. We want them to be in the limelight. Roblox Took a dive on the back of Netflix GPE results which Plummeted. Our investors reading too much into the connection there. I think our company is somewhat unique and what is very exciting to go to work and be the CEO is being in a market like this, you know, where we think ultimately, billions CARDINAL of people are gonna use this Type of technology and the other exciting thing about this market Many big inventions that still have to happen. It feels like we're pretty mature but inside our company, we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step. Would roadblocks ever consider more in game advertising? Yeah, there's a funny trivia note I would share to all the Roblox PERSON fans out there. There was a The very first ORDINAL way we monetize was advertising and then there was also a time when we had pre-roll video on Roblox that's all gone now it's gone for a couple of reasons we didn't want it to interfere with the user experience and also our our virtual economy has become such a powerful way to power this that we are able to take that In the future though I think there's a certain type of advertising that is kids safe that is immersive that doesn't get in your way Take away from the ethos of what makes Roblox PERSON great The people on Roblox PERSON , you know, they're there to authentically connect with their friends and as long as what we're doing with these brands is very clear and on deceptive, appropriate for those ages DATE . I think they'll they'll figure out the balance of how much time do we go into a store versus how much time do we go to a crazy Ensure tycoon and you know build an amusement park together. So either way this could be a huge new revenue stream for you. I believe it's an awesomely huge revenue stream and at the same time we've been very gentle towards it. So as you look ahead what do you think are the biggest challenges Roblox PERSON will face? Favorite Vision plays out which we hope it does and we have people of all ages on the platform and we're around the world I think Any that civility as we grow as we have older people who might wanna do go to a political rally thinking ways to do that in a systemic way that's a big challenge. It takes a lot of thought. I think thinking through the technology I I really like we're very technology driven company so it's fun to be running a company where We have to do these seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenges super interesting. We do a little rapid fire section just to get this. Okay. Are you gonna try to Awesome ORG . First ORDINAL question what's your morning TIME routine? Wake up. Go outside on my porch do a CrossFit workout Take a shower go to work. Where are you most productive? Home or office? Both. Different types of productivity, homes, and state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show right Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's this weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. Best life hack. It all gets down to the joy of health really like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that, everything else just completely falls. Hawk radio show. Yeah. Now that I've met you in person, I I get this. No way. You're being pretty fun to listen to yeah what was Hey so my GM ORG was I would say starting in college when I would have insomnia at 2 AM TIME I would turn on talk radio and you know all those famous KGO ORG people Bill Wattenberg PERSON retalia all that just Send to the people calling in. So, I after acknowledge revolution was acquired. I had a year DATE . I had a little time to dabble. My jam was really trying to talk about outrageous topics. You know, Bling other.
The year DATE I had a little time to dabble my jam was really trying to talk about outrageous topics you know Gambling, other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. Yeah. You know, it's like call your mom. Please call. So, it's really scary if you're a No one's calling you inside I I made it really controversial I have people come on and debate interesting topic If you could have dinner with Steve Jobs PERSON or Walt Disney Who would you pick? Both. I guess I would have to slightly lean Disney just because he was not just the usher of the innovation but actually was kinda part of the some of the innovation but I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for Oneies ORG . Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE . Life is short. A valuable commodity What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the word balance. I would say can I Make my roblox job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job as a CEO? Every CEO job is different. Like I like doing it. So, can I figure out what my role is? You mentioned your co found Eric Castle PERSON . Yeah. Earlier who died Of cancer. Yeah. In 2013 DATE . If he was here today DATE , what do you think he would think of the roadblocks that Roblox has become? Wow I think he'd be proud It's a good question. Yeah. Like I think he would you know, his both of his sons have worked at the company a bit. So yeah, I think he'd be very He's just such a brilliant partner. Yeah. And he he also set the standard for taking the long view on how we engineer things. A lot of the Roadblocks is still You know, his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So, in 5 years DATE , will the metaverse exist? In the form that you imagine or is it take does is it gonna take much longer like what's the time horizon? Well it it's really interesting right cuz we're right in the middle of it right now in a sense with 50 1 million CARDINAL people every day on our platform. Yeah. It's already here. And at the same time Is ultimately gonna be possible could be 510 CARDINAL or 20 years DATE , out. So, it's it's all the anniversary really has existence since Online dial up muds really too deep very simple text you could call that the verse it existed in multiplayer gaming world of warcraft exist With more people and in 10 or 20 years DATE it'll exist photo realistically with 50 1000 CARDINAL people Have so much passion for this job Roblox your final stop on your journey. What's definitely my final stuff but I think there's a lot of time ahead of me here. Dave Bazuki PERSON overall blocks. Thank you so much. Access the financial world on demand.
Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars BSO Now your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed archival concerts visit PSO ORG . Org slash now with the music plays on BSO season sponsor Bank of America ORG Know how to maneuver them machines Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If you're satellites gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem now. Of a collision is a lot higher now. We've installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the likelihood of the collisions going up Thank you Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks for having us. Just found out we actually lived in the same dorm in college. Just a few years DATE apart. So, it's been almost a year since you took over From Jeff PERSON CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to Unionizing Amazon ORG Warehouse your first ORDINAL Bloomberg Conference. Thank you. I wanna start with a quick report card. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Later he passed the rains to andy jassy his long time top lieutenant the architect of one CARDINAL of the company's biggest profi Amazon ORG web services Bezos PERSON has stayed on his executive chair leaving Jassie to navigate a critical inflection point in Amazon ORG 's history. Does the company manage market turmoil rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back? On this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg Technology Summit ORG in San Francisco GPE . I'd like you to grade Review ORG of amazon ORG 's performance And we've got time later to to really dig in but quickly how would you grade Amazon ORG 's performance over the last year DATE with Customers ORG . I'm not sure the right person agreed myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've A lot of good. You know, and I think if you look at during the pandemic which really has extended till the early part of this year DATE , you know, so much of the PPE ORG and food and essential items and people equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we've
Some people equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39% PERCENT your over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Never happened before. But it was really hard to do that. And we had to take the really big footprint of fulfillment center footprint. We built the first 25 years DATE of Amazon ORG and double it in 24 months DATE . We built out that transportation network and just a couple years DATE . You know we nearly double the size of our workforce during that time and I think you saw it and Businesses PERSON , you know, AWS ORG is a really big part of helping And governments have business continuity during the pandemic and So many companies in organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that So, what about investors? I mean, the stock is down significantly from a peak last year DATE . Obviously, there's broader market turmoil Yeah I I think you know for investors or financially I'd say it's mixed you know I think we have some businesses are growing really strongly if you look at AWS you know in in 2021 DATE Ruth PERSON 37 year% over year you know it's not a 70- One 1 billion dollars MONEY revenue run rate business. It's pretty unusual growth and we grew 58 CARDINAL year% over year and our advertising business. You know, it's a 32 1 billion dollars MONEY revenue runway business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, compar During 2020 DATE , but I think the real challenge for us there is on the car side and there have been several things that have happened. Some of which are more controllable than others. You know, I think the part that's less control is really around inflation and I think we The inflation will start to attenuate in 2022 DATE and with the war in Ukraine GPE , it just went the other way. It has significantly accelerated so the cost of trucking and line hall and ocean and air and fuels to substantially going up I think that will turn you at some point. No one knows how long that'll take. I think the more controllable areas for us are really around fulfillment center capacity and productivity. It was taken about 24 months DATE to build new fulfillment centers during the pandemic It's a weird to make decisions you know I made 2020 DATE in early 2021 DATE on how much demand we're gonna plan for and so you know we we end up with more capacity than we need right now and and there's a number of things that we're working on We've stopped building on properties where we don't need it yet and we've let a number of leases lapse and not a small number you know both those things we've had a lot of occasions History where we've worked on productivity, made improvements, and we've a lot of clearly defined issues and I'm confident we're gonna get back to the right level of profitability. You are gonna sublease 30 1 million square feet QUANTITY of space. Is there a mistake in the ex Because of the horrible You have to make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39 CARDINAL year% over year DATE on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision and we made the decision to air on the side of our consumers and sellers. Now, how would you grade Amazon ORG 's performance with employees, your colleagues, there has been some high profi Yeah I I think that And when I started in this gig we had just create a new leadership principle to strive to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion. But I still think there are Areas that we can keep improving. You know, and I think you know, the first one I I'd mentioned is safety. You know, I think that you know, in our fulfillment centers, that is the top priority and you know, when you get into the details, the number is an outside of all the spin of it all. You know, we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We have, we've identified kind of a top 100 CARDINAL list of Areas that we can be better at that we're just metronomically stepping through and so we made a lot of progress but we've a lot of work to do still.
Kind of a top 100 CARDINAL list of of areas that we can be better at that we're just metronomically stepping through and so we made a lot of progress but we have a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy. We're laying off 10% PERCENT of his staff Jamie Diamond PERSON says he's preparing for an economic hurricane the World Bank ORG just slashed it's forecast for global growth How do you feel about the economic climate Well I wasn't planning on giving any guidance to the guy But super bad or super super bad. I think there's some things that are released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline. And if you Believe that that equation's gonna flip at some point which we do. I think it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few obviously in the 25 years DATE that Customers ORG changed their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow. We have a road map that's, you know, Probably 3 to 5 years DATE long and we're gonna continue to invent Continue GPE to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. Now, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been overvalued and this also course matters to employees who are Paid ORG in stock. Haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public I have never tried to predict what the stocks gonna do in anytime I've tried to a little bit I've been wrong so you know I think it's it's pretty hard to Hard to predict what it's gonna be in any short period of time. I do really believe that Benjamin PERSON , you know, that Benjamin Graham Max PERSON and that in the short term, the stock market tends to be a voting machine in the long term. It tends to be a weighing machine. I think if you, you know, we've been A lot of points 25 years DATE has been at Amazon ORG The macro factors are off and Stocks are down. Our stock is down. You can't really control that. You know, we have a concept we talked about a lot at Amazon ORG . You know, the ultimate output for a company is share price, you know, and then other big outputs or free cash flow or profit or revenue. You can't Manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to work out I think we've had very good returns Investors and I expect that to be true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is Eating PERSON it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. That might not be totally inclusive or not be Concerns about how this technology could exacerbate discrimination. Really FTC ORG I think for most the FDC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't
Do you see I think formos the FTC ORG needs to be making sure that we're fully understanding this technology? We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? What are the moon shots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is Astro PERSON the home real butter is it something else Well you know we have a unique way that we look at Big new investments and I'm not sure it's right or wrong it just happens to be our way and we ask ourselves when we're considering something four CARDINAL questions we we ask If it's successful it can be big and move the needle on Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have confidence there? If not, can we acquire quickly? If we like the answer to those questions, we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation, investments that seem pretty obvious, like, you know, when I got to that company Books ORG only retailer and then we expanded to music and video electronics and toys. People. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something that people externally and internally thought was little bit nutty at the We're just imagine what Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments we're making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think we Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Netflix GPE and Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers who are, you know, get that entertainment for free by Part of a prime and and so we have a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show reacher earlier in the year DATE was a huge hit we you know we the Season we we just launched new boys season which is are you a big boys fan? Hey Amazon ORG . Very good. Of course, we have go to the rings coming up, you know, in Thursday DATE night TIME football. So, I'm very bullish about it. We also, We're excited about what we've done with MGM ORG you know I think some of the assets there will go very well with the rest of what we're doing entertainment wise. So if you look at Warner Brothers Discovery ORG in Paramount Stars and Global they're building really significant subscription So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant grocery business which is, you know, early stages for us I I'm excited about Piper which is our low earth orbit satellite that we're building. Gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about how different World LOC is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . You're building the world's best personal assistant. We have, you know, 200 1 million QUANTITY endpoints already that are using Alexa ORG . We're clearly onto something And then you are autonomous driving ride healing Zooks that were building you here in Bay Area LOC . I just think with the way auto consumption is evolving, I think that Is the chance to be really significant business. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different company. Just like we were when AW Became successful. So, I think they're very worthwhile investments and bets and I'm optimistic We didn't mention Astro GPE obviously though powered by Alexa ORG Need our home robots gonna be
I think they're very worthwhile investments and bets and I'm optimistic about Didn't mention Astro PERSON obviously the powered by Alexa ORG but I mean our home robots gonna Where is it? No. It's not really widely available for sale. What's I hope you go one. Okay. Thank you Everyone's very curious about Jeff PERSON 's role. These days DATE , what kind of executive chair he really is, he said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside, it looks like he's really focus Philanthropy ORG he's focusing on space what kind of an executive chairman is he What you know Jeff PERSON has always gonna be involved and he has you know I I'm I feel very lucky to have been in Amazon ORG for 25 years DATE . Very lucky to have worked directly for Jeff PERSON for 20 CARDINAL of them and we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and how important is the optimize for customers and how I standards they need to be you know given how easy it is for people to switch The importance of invention and speed and so you know, I just feel very lucky to have had the chance to work so closely with him. So, is your relationship? I mean, he was your only boss Is your relationship Mentally different than it was when you were the head of Job you have the relationships different you know remember might the first couple years DATE I work for Jeff PERSON I work is what we call the shadow then what's really like achieve a staff and That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and and it's different when I'm in the CEO role but you know the cost and has always been that we have a great relationship And we collaborate really well. Amazon ORG is poised to become the biggest private sector employer. In the world second ORDINAL only right now Walmart ORG is is in that spot But amazon will probably soon surpass it First ORDINAL vote to unionize at an Amazon ORG warehouse. I know you've been spending a lot of time at warehouses When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired pulled off this union vote what's your message to Like him. Your message to the folks who think maybe we should join a union. I know I think that in the first thing to be clear about is that employees get to make that choice where they wanna have a junior or not. They always have had that choice and it continues to be their You know we happen to think they're better off without a union for a number of reasons including the fact that you know it's it's much harder when you have a union to have a direct relationship with your manager And to get things done quickly. So, if you see something on the line that you think could be better for your your team or you or your or customers, Can't just go to your manager and say let's change it. You know, there's a whole process in in bureaucracy that you have to go To be able to do that. You know, and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bring up weed much rather here from every employee. Whatever is on their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time. You have to have Competitive PERSON benefits and then I think if you look at Amazons they're very unusual in this space we champion the $ 15 MONEY minimum wage several years ago DATE Starting salaries now over $ 18 MONEY an hour which you know is is more than double the federal minimum wage. You get full health insurance and 401 CARDINAL K and 20 weeks DATE up to 20 weeks DATE of parental leave and if you wanna get a college education, you haven't had one A career choice program that let's our performance center associates be able to do so. That is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our our employees and we need You to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously. Mark that you want to make
The mark that you want to make Renewables PERSON . This is a level of uncertainty that we haven't had to deal with. Television and radio Stocked earlier enough all these precious materials you were just mentioning and we were on the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need The FTC ORG has revamped And by some accounts is Reading it. Are you preparing for an anti-trust lawsuit from the FTC ORG ? If you or a large company that's growing is to significant extent like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if somebody look, Was stand up to that scrutiny and I you know I think that's what we've tried to do in running the business. We can't control You know, you know, whether organizations bring different suits against us but I think if you look at our business, if you actually look at the fact, if you take out of, you know, take out of the equation that they're they're may not be Objective. You know, leadership when it comes to Amazon ORG and that organization. If you look at the facts, you know, in our retail business, we're about one% ORG of the worldwide retail market segment share. And remember, 85% PERCENT of it is still offline. And if you look in our AWS ORG business Yo ORG about depending on how you measure it 95% PERCENT of the worldwide global IT Spanish NORP on premises you know and then we have a cloud business and then we have a portion of that and we were leading market segment share in the cloud part of this We operate you know who we compete with NWS ORG is really on premises IT in addition to the clouds so you know these are relatively small percentages of of the Reply and you can kinda step through all the businesses and I think simply because you've been successful Different ORG businesses doesn't somehow mean that you have a natural market power. It just means you've been successful in a couple different We're experiences but we still have AA relatively small amount of market segment sharing those areas. What about the SEC ORG ? You're being sued by them over third ORDINAL party data and how you've used it. Do you think in the past Amazon ORG made mistakes with letting employees intern How those third ORDINAL party sellers were doing? Pretty good control. I mean, you know, we've, of course, disagree with the premise of that but I would say that we have very good controls with respect to the data that the different police sets are able to see. And by the way, I think that we can be better for sellers. You know, I I think Yeah we can have better tools from the good start we give better tools from the manage what they're doing across their their different Units ORG . I think we can communicate better. There's a whole bunch of things we can do better. And we organize over every single email or communication we get from sellers. We do very regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with On in I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes what Sellers don't really long for e-commerce software.
Business by virtual song on Amazon ORG versus not a completely changes what's possible Don't really long for e-commerce software that exists in lots of places and Very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of the businesses they're building. So, we have a lot of work to do there like we're doing a lot of other places I think we were very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still really, you know, significant issue Sorts of businesses. We have worked really hard to open a lot more. Points of presence and ports and increase our capacity in getting products in but I think it's gonna be something that companies battle with for some time. You made a huge mark. On Amazon ORG with AWS ORG obviously. Mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era Well I I don't I don't really think of it that way Emily I mean I I don't think it's really about any jazzy era or anyone person you know and and and by the way AWS was not about anyone person that you know if you spend a time on AWS That is an unbelievable team not just an incredible leadership team which it is but just top to bottom and then the number of inventors and people care about customers Operate NORP , you know, something where it has to work almost like a Delton GPE . It's it's always teams and so, I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses It still lives offline. Oh my god. I think we have a lot of upside and a lot of growth and I think as much invention as we've seen Last 25 years DATE you know the time I've been there I think It's gonna work small compared to the next 25 years DATE . There is a lot for us to invent. On behalf of customers and so you know, I'm excited to be part of the team that makes that happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we have a responsibility to do that and so you know it's it's it's a long journey that we're working on but I'm I'm excited to be part of it and you know I Order PERSON for a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you. Candy Jackie PERSON , Sarah PERSON , Amazon ORG , Do you see that coming? The moment news breaks 24 hours TIME a day. Boom.
Under 120 CARDINAL countries. News breaks. 24 hours TIME a day. Bloomberg PERSON . Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE this group was broken by Bloomberg PERSON 's Amanda Gord Tag PERSON on the product may read made in the USA GPE but Made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG Sacha Nadella IBM's ORG Arvin Krishna PERSON micron technology Sanjay Mehotra PERSON and that's And that doesn't count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a You watching the best of the cutter economic forum I manage cranny in Doha GPE this week DATE 's event which was powered by Bloomberg PERSON brought together global business leaders and heads of state to tackle some of the world's most pressing challenges from On Ukraine GPE . Over the next half hour TIME we'll bring you all the highlights from the most important interviews and conversations beginning with it on musk the world's richest person spoke to Bloomberg ORG 's editor in Chief John McElth Waite PERSON about his head kind plans at Tesla why you thinks a recession is inevitable Course is ongoing bid for Twitter PRODUCT . Respect to that the Twitter PERSON transaction there's a limit to what I can say publicly given that is someone who was sensitive matter So, I would like to be measured in my responses here. Is not to generate incremental lawsuits. Rescue sometimes managed to overcome Yes I think importance. So Twitter PERSON given you enough information. Well there are still Result PERSON matters you you probably read about the the question as to whether Number of fake and spam users on the system is less than five% as Twitter PERSON claims. Which I think is probably not most people's experience. On reusing Twitter PRODUCT . So we're still waiting resolution on that matter. And that that is a very significant matter. So We're waiting on that. And then of course there is the question of will the the deck portion of the round come together and then will the shareholders vote in favor. So I think those are the three CARDINAL things that stand in the You know, if that needs to be resolved before the trans Okay. What about the general state of the economy? Does that weigh on you?
Stand in the If that needs to be resolved before the transaction Wait ORG . What about the general state of the economy? Does that weigh on you when you think about this? I mean you just described it. You have a super bad feeling about the economy. Are you still in that position? I've just said you earlier. Joe Biden PERSON Has just come out and said that America GPE is not inevitable. How do you feel about the economy? At some point. Best weather there is a reception in the near term I think that is more likely than not. It certainly isn't. It's not a certainty but Appears more likely than not What do you think I'm I'm I'm I'm with you Hey Facebook Can I ask you one particular thing to do with the Twitter PERSON bid which is you know you are one of the And fastest growing investors in China GPE Tesla you've talked about it being a third ORDINAL of your sales going forward You'll know buying Twitter PERSON that kind of public forum for free speech The Chinese NORP historically don't tend to be very enthusiastic about free speech Worried Whether you can keep those two CARDINAL particular horses running is is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP ? Well, Twitter PERSON does not operate in China GPE . So, And I think It's heritage The As far as I know you're not under pressure to Got from China GPE . So, I think there's I don't think this is gonna be an issue. And in terms generally of that issue of freedom of speech and Twitter PERSON you've talked about Twitter PRODUCT being making it even freeer and letting more people onto it. Is there a limit at all to to who you think should be allowed onto Twitter PRODUCT ? My aspiration for Twitter PRODUCT or in general for the digital town square would be that it is as inclusive in in the water since the word as possible That is it is an appealing Years DATE . So, I mean, I do like to get like 80% PERCENT of That's it North America LOC and perhaps Half the world or something. Ultimately, on On Twitter PERSON it's in one or another And that needs that means it must be something that was appealing to people it it obviously came out of your place where they feel uncomfortable or harassed or there was something not use it can you set the record straight on one CARDINAL thing which is this issue about the layoffs I think you Initially that Tesla 10% PERCENT of the workforce would be cut then 10% PERCENT of salary would be cut then salary would stay flat and overall headcount would go up what What is the number? I know there's already I think being AA law About the 10% PERCENT is is 10% PERCENT the goal to reduce the workforce so what is the number that we should think about or that your planning So it has reducing the salary work was a roughly 10% PERCENT over the next probably 3 months or so. DATE Expect to grow at our hourly TIME workforce. We're actually quite clear that we expect to grow up out around hourly TIME workforce. But we Very fast with on the salary side And we grew a little too fast in some areas and so it requires reduction in Two thirds DATE hourly TIME and one third CARDINAL salary. So I guess technically attempts that reduction in the solid work horses only roughly at three three and a half percent DATE reduction in total headcount. Egypt GPE 's finance minister doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. No we are not already in a session Back to
Doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. No we are not already in a recession But we have now Of economic Wallet PERSON bank I'm a Have reduced their expectation for economic growth but If the current direction To be continued and Escalated I believe that enoughly we will go for recession. Do you see that because of higher interest rates that are coming to barren your economy and the global economy? Package of elements will work together High cost of financing, food security, And also pressure on mini developing countries in this world which can contribute heavily to Negative impact which will be at the expense of their ability to grow Are you in shock Or panic over fuel and food at the moment. Panic rather than a shock I believe that Since we'll activate further it will materialize to a big shock. The consequence Of food and fuel is 13% PERCENT core inflation sir I've had people tell me inflation is topping out. It's it's it's over. Second half of the year to get better. Do you share that view? Do you think inflation has plateaued or topped out? Expectation is to increase not to decrease. Significantly It depends Hey If oil prices will continue this event Food prices continue to this trend if the federals and the other central banks will increase interest further Particular You know eh we may start to see eh in addition to what we have seen until now Supply chain Difficulties ORG to get financing So, it's 13% PERCENT on the core at the moment. How bond could it get? If you are talking about Egypt GPE then particular indeed sir 13% PERCENT You know will depend on how much inflation we are important This is a significant part. Why? Because if infilation accelerate further in Europe LOC and United States of America GPE as a result of all these fact And in addition to that higher interest rate will add to higher cost of financing this will mean that we will be negatively impacted we hope That this will not be materialized in the coming period DATE . So, we should you know, I'm worried also about how military policy as a central Feathers And we don't know what will be there decisions very soon to the act to in Felicia PERSON Further significant rate hikes from the Central Bank ORG . I hope that Egyptian NORP economy to grow and high cost of financing it will be a problem for the industry for the For the economy but eventually infiltration is a core business infection.
Financing cost for the economy but eventually infiltration is a core business Central ORG bank of Egypt GPE . Up next the deputy chairman and CEO of the Kui Patrodium Corporation ORG tells us how much of a premium he thinks the war in Ukraine GPE has put in the oil prices. This is Bloombad GPE . Choose Bloomberg PERSON . She's a great question. Great question. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Find people analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest ambassadors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Energy was a course the major theme of the week DATE and the deputy chair and CEO of the Kuape Patrolium Corporation ORG told us he thinks the war in Ukraine GPE has only highlighted how important energy is to the world Hey Premium ORG into the oil market. He caught up with my colleague. We think that oil is there for the long term in terms of even in any energy transition. So We maybe concerned about what obviously the next 18 months DATE is gonna do for financing and and for our cash balances but over the Price ORG express. Yes. Does that get pushed back? The Mistake that a lot of us a lot of people have made Before the the Ukraine war was to say this is gonna be a war against fossil fuels and that we must stop oil production. Well, the world is using more carbon And this crisis in in the Ukraine GPE For all the humanitarian issues that come with it Hydrocarbons have a big role to play now can we make the hydrocarbons cleaner and and more efficient absolutely that's how what we're trying to do and that's what we're investing Footprint PERSON of the oil barrel. We're in Kuwait GPE and I mentioned this earlier today, we're in Kuwait GPE at the lowest end Footprint PRODUCT . Now, we need to stay there. That's gonna require a lot of investment.
Earlier today TIME we're in Kuwait GPE at the lowest end of the Coscar both in Cost and carbon footprint. Now, we need to stay there. That's gonna require a lot of investment. See more investment in the short term or no? Continued investment. Prices where they are, that is spring investment. You're seeing some rings coming back into into action in Permian NORP , and you're seeing US GPE production going up overtime. You're seeing a lot of us. Also, continuing to, to, to produce now. Four CARDINAL , four CARDINAL , companies like KPC ORG , we look at the long term, so we're investing right through But companies that that don't do that are are putting in more investment right now. The the Right now is really about the cash cost of of those investments withinflation and and steel prices and whatnot. Yeah. Going through the roof. It's going to be an issue. The energy price. It's so high right now. Stabilize. Barrel oil which is not that high. Over the past Which is still comfortable. The energy intensity of the world economy is about a third CARDINAL of what it was about 20 years ago DATE Continue to go down. So, oil prices, yes, they do impact Economic growth into a certain Do you see any demand destruction in our conversation Anywhere. We're getting Calls from our customers say demanding the same amount of oil and some cases a little bit more. Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation. This is Bloomberg PERSON . We've got the information and insights. Yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Television and radio No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE do you see that coming to Taiwan GPE and We will not just cut and run. The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. Welcome back to the best of Carter PERSON economic forum for treasury ORG secretary Steven Manuchin PERSON says inflation in the US GPE can be brought onto control Follows through on its pledge to continue raising interest rates. He spoke to Bloomberg PERSON 's Eric Shatzger PERSON . I do have a lot of confidence in in Charapowell GPE by the way it's fun. I can now talk about the fed ORG . I wasn't allowed to talk about Fed ORG policy for many years DATE . You know, I guess my my most Advice GPE to the administration is don't do any.
The fed ORG I wasn't allowed to talk about Fed ORG policy for many years DATE . You know, I guess my my most important advice to the administration is don't do anything to shock the economy. So they had been talking about raising taxes. They had been talking about making different changes. Not now is not the time to put any additional shocks. Things like gas tax on the margin may help a little bit. But this is really now the federal reserves job Administration needs to be careful not to get in the way. I do think, you know, the number one CARDINAL thing the administration can do and I think it's not just them. It's obviously otherworld leaders is we need to find a political solution The military solution alone Not going to be what stops this You have confidence in chairman Powell PERSON and you know well. Having worked together With him and other members of the federal reserve ORG . The reality, however, is that financial markets aren't certain whether they have confidence in chairman Powell PERSON . There's a growing consensus that the federal reserve ORG isn't raising rates fast enough Fed ORG lost credibility With its On inflation that it was transitory Two CARDINAL questions Do you think that the Federal Reserve ORG needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world And What will it take to restore that last credibility Well let me just say it wasn't just the federal reserve the administration also Was talking about inflation would be under control. So, you know, I think from the Fed Stamppoint In hindsight they clearly waited too long but having said that when you're managing the economy and you're the federal reserve I think you have to balance both sides of that equation I don't buy that the fed ORG has lost credibility I think the fact that the fed ORG moved in 75 CARDINAL basis points which a month ago DATE is not what the market expected I think chairpower is now signaled another 70 CARDINAL Basis points. Think if you look at the dot plots which I never was a big fan of these dot plots but that's another story. You know, I think the market understands that expectations are that is the feds gonna raise rights. I think the portfolio is just as important and they're they're beginning to slow that down You know, look, a year ago DATE , I said, we're gonna have ten-year DATE treasuries, three to three and a half percent CARDINAL and people fought that was really high. We basically have 10 year DATE treasures at three to three and a half percent CARDINAL If the market really didn't have credibility in the fed ORG , interest rate, the long end would be a lot hotter than it is. Even if Europe LOC enters one he still bullish on the region. Mansour Ben Ibrahim Al Mahud PERSON spoke to my colleague We could go into a recession in some part of the world maybe in Europe LOC I had commented that we might go on to our recession in Europe LOC because of the energy prices of pressure But also I have a positive review in Europe LOC and General in the long term Europe LOC as a destination of a lot of talent They have a very good education system. It's a tourist ticket destination as well And they have on top of this they have also an advanced program in the renewables and this is will give them an advantage over any other you know countries So It might be a little bit difficult in Europe LOC but in the long run I'm bullish about it. So is is you're about the moment that your biggest But also your biggest opportunity if you look at the part of cash how much you wanna put in Europe LOC compared to other regions in the world see from from 2018 DATE once we have an answer or strategy we we were very vocal about our concentration in Europe LOC no And at the same time we have said that we will not be stopping investing in Europe LOC . We will be very selective. But we
No. And at the same time we have said that we will not be stopping investing in Europe LOC . We will be very selective. But we are going full speed and and the US GPE market and Asia LOC We have a, you know, other friends I set a location to remove geographies and we would like to To reach a proper location between the geographies But again, Europe LOC , we will not stop investing. We will continue investing. Where I have, I wasn't in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technology space and in Europe LOC . I think at some point you're looking for assets infrastructure assets in Africa LOC . Is it still the case? Yeah, of course, I've been if we can deploy more and I freaking and for a structure would be a fantastic. We have been investing and renewables as well and and Africa LOC . And we would like to do more. It's a little bit than a slower pace and other you know a countries But we are trying to find our partner to deploy more in Africa LOC . Anything with Russia GPE so you you have an I mean actually AA pretty sizable and considerable assets in Russia GPE . What will happen to them? Still status quo we are not investing more in Russia GPE at the same time to be practical you cannot exit I know some some companies have announced to to exit it but and in reality they couldn't We are monitoring the situation in Russia GPE . We are in full compliance with the international sanction. We are our team on top of this in a daily basis to make sure that there are Embedding any any update on the sanction But we always wish and hope that this is will be settled very soon for the sake of the people of of Ukraine GPE . Are you in touch with the Russian NORP government about some of these assets? Naturally right now but but you know we have a big a big investment in Rosener PERSON as you know Rosenth ORG itself is not undersanction. Of course we have a fiduciary 2 hour TIME future generation of course we will be in touch of them for for the dividends that we we deserve. But any further investment now What do you do with crypto right now? So, it was, I mean, it's up, it's down, depends on stable coins or or other ones. Are you interested? At class? No, trip to now. A blockchain yes But we have very clear review on this and and our team and and the technology space are exploring opportunities in the blockchain. And that's all from the counter economic forum right here in Doha GPE you can find complete coverage of the event including full interviews and articles the destination Bloomberg PERSON . Com Communicating PERSON for staying in touch. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People. Analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. From Bloomberg PERSON . Start exploring to see what's moving the markets.
Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars. People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world People that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Renewables. This is a level of uncertainty that we haven't had to deal with. Petitions should be on social media because it's also their way of connecting with people and they certainly have a right to free speech. So, I don't think it was easy Matter to to decide whether Mister Trump PERSON should be taken down or not and we actually also touch upon an hour decision that Trump ORG should not be taken down because he was saying falsehoods about the election. We only said that it was right to take Mister Because he was sighting violence. Hello and welcome. Billions of posts from billions CARDINAL of users. Political, social, and financial power, bigger than some nation states. So, how do you oversee Facebook? That job falls to the relative Hey Facebook oversight board dub to the social network so called supreme court ORG and my guest today is it's Kota PERSON hella taunting who was Dan Mark's PERSON first ORDINAL female prime minister she led the centre left social democrat NORP In a coalition and held that post for 4 years DATE until 2016 DATE now she's helping to oversee the tech item which operates under the parent company meta ORG and also owns WhatsApp ORG and Instagram ORG So can it really be held to account even by former world leaders professors charity bosses and noble lawrence add a time when the social network business can block a US GPE president and as it tries to curb COVID misinformation arguably It's a more important role than ever. Matt PERSON . Welcome. Thank you very much. What we'll get to that role shortly but I wanted to just come to something which I find fascinating about you. You were 48 when you left the biggest job of your life. It's actually very interesting because I I think that Ask prime ministers we become young and younger And that also means that we leave earlier and many former prime ministers they actually yeah died on the job but we are a generation of politicians that came into politics quite early and I also leaving quite early and that means that I was Just before 50 DATE . Er and had just to shake my head a bit and find out what's what's there for me for the rest of my working life. Er and was extremely fortunate that I got in contact with say the children international here in London GPE . Er and started talking to them because Needed a new CEO and I took over that role and was so happy to start a new chapter with something so meaningful as working for children all over the world. Can you remember that the day DATE after you ended being Prime Minister? I mean did Get your jogging bottoms on, you slippers, you slob about, what do you do? It is so weird to stop being prime minister and I think there's nothing that compares to that. Your whole life changes.
Being prime minister and I think there's nothing that compares to that. Your whole life changes and I remember very clearly coming in hugging my chauffeurs and my the police that had been helping me all the way through. Hug them goodbye. My house walked in close the door behind me And quiet Quiet no one phones you the office the party you used to people connecting and talking to you all the time and stuff happening Time ORG . And it was just quiet. So I remember that quiet. It was a taste test not like AA depression but a little bit of a situation where you're not quite sure how you live in this life without all the bus that was around you. Er but I watched Game of Thrones for for a month DATE . I got on. Okay. That was my way of transitioning into just being a normal person again You mentioned about becoming the chief executive of save the children That came to an end and your next role which is as I was just saying in my introduction it's such an important and pivotal moment to have such a role is co-chair of this Facebook oversight board I just want to ask first Who asked you to do it and why did you want to do it Well we all know that social media has come up as and has for a long long time been very unregulated and basically what we saw was that the ultimate decisions about what content stays up on social media all gets removed is taken by the social media company Himself and ultimately mark soccer book Somehow WORK_OF_ART , that doesn't feel right. We need probably more regulations or social media but it also seemed a better way of doing it That Facebook was actually outsourcing to an independent body How their content should be reviewed and so so basically the reason why I took on the role is because I consider the oversight board Independent Facebook ORG has to listen to our decisions they have to follow our decisions and we also have this opportunity to give them advice or recommendations of what they should do on social media and that goes both for for Facebook and for Instagram NORP so on last we have been promised complete independence And that they would actually abide by our decisions and follow our decisions. I would not have done it. So, it's basically Facebook's leadership. Asking me to do this and we look Very carefully into whether Be an institution that would be have that complete independence. Let's definitely come to the intestines in just a moment if we can. But are you comfortable with the amount of power matter has overseeing Facebook, Instagram ORG , WhatsApp ORG ? Yes or no? I mean I think social media has been too unregulated for too many years DATE and obviously the oversight Not dealing with everything met so they'll be a Texas GPE discussions and other discussions Discuss discussions that we are not dealing with. We're dealing with content but there is absolutely no doubt that until we start at our work meta was left too alone in terms of deciding on content whether content should stay off or get removed Making their own rules as they went along the transparency was missing it's still is and that is why we need regulation and we need an oversight board What do you say to those who are concerned that you are funded by facebook to police Facebook? Hey Facebook cannot interfere in any of our decisions. They have to live with our decisions. When we decided on the case with regarding Trump for example, they had to follow our decisions and I don't talk to none of us talk to Facebook about how we should decide anything. So, it's up to I'd ever wanted to decide do they think that's independence I don't take any orders from Facebook don't take any orders but you can't necessarily know what they're not telling you and and for the world you know the whistle blower Francis PERSON yeah Houdin came to people's She came and spoke aloud. For instance about that high profile Facebook users got to follow different rules and receive special treatment. I mean how could you trust Facebook after that? Do you have to trust To tell you. No, we have to find a retrust in Facebook after that because for example on the crosschecks that
I mean, how could you trust Facebook after that? Do you have to trust Facebook to tell you? No, we have to find a retrust in Facebook after that because for example on the cross checks that Hogan PERSON was talking about There's no doubt that we didn't know enough about that which we have criticized a better for not telling us sufficiently clear about these crosschecks also when we asked about it we didn't get sufficient answers so so this is something we are going to follow up And I think just the fact we have existed for a little more than a year DATE now has set some light on the lack of transparency the crosschecks the fact they don't talk about these things in public and other aspects of Transparency with with Meta ORG . So I do think that Francis PERSON had to say I was yes some of it yes I was annoyed when I found out that the crosschecks that we had been asking better about they had not given Feeling answer to our question. Sorry. Cross checks is what they do with these high profile individuals that has an account Where they seem to be special For high profile individual. Been told about it and when we asked in the context of the Trump PERSON case that we looked at. Yes. They didn't give us a fulfilling answer. Which we have criticized also publicly. So I think it actually underlines that you're right. We don't know what we don't know but gradually when matter is forced to open up more to us and then also To the yeah but that's absolutely but that's why it's good to have whistle blowers but I also think our role here is to keep asking those questions we've also asked Frances PERSON how can afterwards we had interviews with her because we invited her to help we have And we are probably going to speak to her again. So we have spoken to her and oversight board to get even more information and we will continue to talk to anyone who's got anything to say about matter that we think will help us in our work and learn from that and feed that back to to Facebook. Knowing that you Be misled I wouldn't call it misled. I think that's that's your word, not mine. Okay, what? So, what would you? They didn't give us Okay. That you've been left in the dark. Yeah. Over something. Is that a better? Yeah. Way of putting it. It's it's details. How do you then trust Facebook do you trust I think Facebook should be much more transparent with the oversight board but also with a general public which is actually more important and I believe that the work that I'm part of in the oversight board will have that effect. Do you trust them You're the co-terror of the book. Yeah, I I trust Facebook that they give us the information that we're asking for. Even though they haven't. I don't think they were completely aware that they didn't but but that's a different question and we have criticized them for for it and there will be other things in They left you in the dark. I don't know you had to ask me to that but I think the most important you ask me do I trust Facebook I trust Facebook generally but that doesn't mean that they will in this instance but also further on down the line there will be Areas where we will criticize matter. We criticize matter every time we take a decision on anything we have already issued more than 80 CARDINAL recommendations for for Meta ORG and we will keep doing that. We push them hard on some of these So I don't need to trust Meta ORG completely. I need to trust that they give us the information and they answer our questions truthfully which I do. But I think that that will actually result in matter treating their Better ORG and being more transparent in general. The world like bloomberg PERSON . In the coming months DATE . Do you see that coming? 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People
Now you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good ambassador? I tell them it's the surround yourself with and work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world. The people that I would like to have managing my money. If the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Hey Mark Zuckerberg PERSON still be in charge I think it would be very wrong of me as a co-chair of the oversight board to start having opinions about who leads matter so I will refrain from from Adding LOC into that discussion. I will not do that. Because I think it'll mix up what the role of the oversight board is. Okay. Which is to look at the content now. I know you've got a lot of Hey Facebook can I tell you something people Almost a year ago to the day DATE really Facebook decided to Trump for sharing a video of his support To his supporters some of his supporters were storming the capital you upheld that view that decisions he suspend him indefinitely but not permanently is that right It was a very interesting situation where Facebook had decided to decide to remove Trump ORG from the platform based on the fact that he was inciting violence and they asked us whether that was the oversight board whether that was the right decision that was one CARDINAL or not one of What we thought about this and we agreed with Meta ORG that they it was okay to remove mister Trump PERSON on the basis that he was inciting violence but we disagre With a sanction that matter had given. So we asked them actually to go back and find a new sanction for mister Trump PERSON . So it became Case about meta and an arbitrary sanction than it was about mister Trump PERSON . System as well as taking a view. Yes. On that. Yes. Some people did view that as anti-democratic you know 75 1 million CARDINAL people voted for it. Yeah. And Facebook is in the situation where it offers everybody the platform. And I suppose what would you say to those people who say he has a right to be on Facebook The most positive thing about social media Is that and we forget that sometimes when we discuss social media is that people have been given voice where they otherwise would not have a voice agency and so many people can actually Make groups create demonstrations. Be together on social media where before they didn't have a voice. So that's the most amazing thing about Media and of course politicians should be on social media because it's also their way of connecting with people And they have certainly have a right to free speech so I don't think it was easy Matter to to decide whether mister Trump PERSON should be taken down or not and we actually also touch upon an hour decision that Trump ORG should not be taken down because he was saying falsehoods about the elections that he Not speaking the truth about the election result we only said that it was right to take mr Trump PERSON down because he was inciting violence Within Facebook's own rules you can't incite violence I got the right to speak but I don't have the right to speak if I'm actually inciting violence
But I don't have the right to speak if I'm actually inciting violence against you or anyone else. So that is where we have to draw a balance and I we thought that Meta ORG did that the right place. Of course Mister Trump PERSON has the right to be on on Facebook and Instagram if he does not Violence. When's he coming back then? I don't know you have to ask me to that. Is there a date? I I don't know they've they've given him a I think gave him 2 years DATE or something like that. Yeah. So you have to ask Matt PERSON We'll be back in time potentially for another run at the White House FAC . We'll see. That's all to matter. We we will see and then you'll look at it of course that's part of the of how it works as we're learning. It's Hey Facebook a platform or a publisher It's a platform in my view cuz it sounds terribly like a publisher. Do you think? As an editor in the way you just describe that view of Donald Trump PERSON ? I don't think so because anyone who Platform where people can can be part of it. They have created some rules. So I do think it's it's good they have the community standards. They actually really good. The community standards that they have. The problem is that they're not always followed. Er but Need to stand that's are good. Er so you said that decision. So it's been through it That decision about Donald Trump PERSON just to go back to to how you push it Was not made by the community. It was actually by meta ORG . It wasn't by, you know, users coming forward. So, that to me, you know, as a journalist, brings to mine an editor sitting in a room. Saying, Why don't I don't think that's okay for us To publish. Yeah. But I I don't zucchin that has been about Facebook Long time and of course if it admitted to being a publisher it would be subject to very different rules. Yes. So you don't accept that characterization. I don't think met says a publisher. I don't think they see themselves as a publisher. And I are And I think we also have to find a new way of seeing that. That's why there's no doubt we need regulation. Very much like what we have. You're bored. You said you only look at concert. I bet. Yeah. Yeah. Does it tip over into not into being a platform and not A publisher what keeps well I think we're well we're well past the point where you can just be a platform because you have to rule because otherwise it just goes crazy you'll have you'll have to take responsibility What's being published? Understanding of the word having it's cake and eating it I don't think so. I think they are completely entitled to have their standards for what they want for on their platform. Regulates us. Of course entitled to now regulate the area. I think we also have to Ask the question do we want Media To be a publisher. No but that's the whole point. A lot of people don't. Which is why they want Donald Trump PERSON back on Facebook. And which I think is a fair point of view but do we do we want one? But do we want social media to then be you can put anything on it the laws Cat to pay so if you look at the law governing this US GPE law this section 230 LAW excuse me State ORG social media company shouldn't be responsible for information produced by someone else which means they use a can publish what they want and that Facebook isn't liable. So which is it? Do you know you should have Facebook is being liable sometimes? And isn't other times. It's very important. But I think what you are asking is really underlying that we need regulation but also on the lining that you can't take social media which existence All shapes and sizes in many different countries all over the world and squeeze it in to a regulation that was for Get previous and all the centuries outlets Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio
No one covers the world like bloomberg PERSON . Seven% in the coming months DATE do you see that coming true 24 hours TIME a day. Bloomberg PERSON your global business authority. Do you come down on the side broadly taking a step back coming away from the detail but social media is a force for good I do actually And I think we sometimes forget it because people are asking really really harsh questions and demanding more transparency and and criticizing matter and social media and Twitter PERSON another companies But I think we sometimes forget we'll be like to go back to a world where we didn't have social media where we couldn't connect with each other on on WhatsApp ORG for example or or communicate with each other getting contact with each other and also Being that when I was CO save the children international I met so many people The world in refugee camps and women who want to organize label organize organise for microbanking or whatever They could not do these things without being able to connect via social medias. Black Lives Matter. Me too movement. I could go on. Of course they would exist and they won't Before social media but when you wake up I do think that social media is a force for good but We're not there yet. I wonder are you grateful you didn't grow up with Media. Well I think no I'm I love my childhood and I like the simplicity of my childhood. I really did. But I also think when you look at young people today I have two CARDINAL kids. We have Kids they are 2025 22 DATE I think that they know more about the world. They're clever. They are better than we were. We also have an individual responsibility as parents to bring our children up but also children growing up to teach them how to be In the world that we have now so I don't I think we must be very very careful not to paint this in black and white so everything was just better I know that's not what you do but everything was better in the old days because there's so many good things particularly for for people perhaps more marginalized people in the rest of the world that being heard There has come of social media and I've met so many people who finally has a voice because of social media and we must be careful not only to judge this by the narrow lens in the western Nordic ORG world because social media Much bigger than that and also I've been just to say you know The societal ills that come out on social media. We're not created by social media. No, yeah. It's a platform to see them in a different way. As well, but I was just gonna ask you about something else as we, our time together to come to an end and it was about Joylessness ORG and joy because some feel taking it from the perspective I am at the western perspective I recognize that. But the internet certainly did used to be a bit more fun. You know you could share some jokes and you still can't be busy. But but people sort of allowed each other to to say things a bit tongue and cheek a bit sarcastic. And I was just looking back. And you took a selfie When you were prime minister that you know I'm gonna be saying yeah yeah but for everyone else and you are at Nelson Mandela's PERSON Memorial you're a prime minister And on one side was Barack Obama PERSON and on the other side was David Cameron PERSON and if I was you I'd also be thinking this is an interesting In the days DATE before social distancing. So you're all crowding. You have a selfie And some said you know this is not what you should be doing at a memorial Actually you responded saying you know we're we're people. We are people. Yeah. And it was a joyful occasion in many ways. It was a it was a very joyful location. It was a memorial but it wasn't a sports stadium and the South African NORP like there was drums. There's music that was singing.
In many ways. It was a it was a very joyful location. It was a memorial but it wasn't a sport stadium and the South African NORP like there Promises music that was singing it was quite AA joyous moment and it almost a celebration of his life yeah we sat in the corner all the headsets of government and there the cameras were muscled in a way I was sitting which was close to Obama we had a nice time Everyone was laughing and and I had not taken selfies at this stage. This was my first ORDINAL selfie ORG . When the president of America Okay ORG . Of the dictionary that year DATE because it became so famous and I just thought this is this is where you take selfies. So I'd just learn to take selfie from my my oldest daughter. Quite an impressive first ORDINAL selfie ORG . How good is it? It's not very good. I'm the only one looking at selfies actually me and so but is it is actually it was fun but people did criticize it because they thought it wasn't serious and it certainly wasn't serious and it was it was interesting to To see that we were just three CARDINAL people in the moment and I said oh let's go try this and it was like a new thing back then it sound like David come and really try to get in in that moment just do it with Barack Obama PERSON it was quite fake Michelle Obama PERSON Just on the side if I remember correctly of the image that was taken if you taken it yeah looking you know not in the picture just quite quite stand straight ahead it was never published the selfie I don't think no I got it it's on my phone I have actually pubs. I wrote a book. No, I haven't framed it. I wrote a book in Denmark GPE . Hey, Danish NORP , and it is actually in there so you can, it's in there. I've seen Okay I haven't I haven't seen that but I suppose just just really to get your Which is the you know there's a lot of hate people don't necessarily see politicians as people and and I just wonder now you're not one CARDINAL anymore we still marry someone but certainly you're not AA world leader anymore do you think it's at our peril that we don't see our leaders as people Yeah I think it is and I I always just want people to come down a little bit because we are all people and we have a got a private life. I'm not talking about being soft on politicians and not criticizing for them when they do things and I've been criticized a lot and Prime Minister's been criticized a lot. So, that happens. But maybe if we all come down a little bit also on social media, we would just have, we would just be nicer and I think the rules should be that we try to treat people on social media like we would And people are very polite to each other when they meet when they stand the cue together when they take the chew whatever Perhaps we should try and take a little bit of that politeness into social media and the world would actually be a better place. Hello Tony Schmidt PERSON thank you very much. Thank you so much for having me. And thank you so much for being with us. Until we meet again. Mask up. Stay safe Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars. People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution.
Lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. David Weston PERSON . We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. China GPE slows the fed ORG worries and former President Trump PERSON strikes back this is Bloomberg Wall St I'm David Weston PERSON . This week DATE 's special contemporary Larry Summers PERSON of Harvard ORG on where the housing market is headed. Softness in the future with respect to housing. International finance on the risk and the opportunity of zombie companies. Money that's being spent to keep zombie companies afloat is money that could be more productively deployed elsewhere. It was a week DATE of signals some subtle and some not China GPE sent an unmistakable signal that it's economy is slowing something that a 10 CARDINAL basis point rate cut doesn't seem likely to fix She is confronting a number of both you know short term and long term challenges right now I probably the number one CARDINAL thing is the poor performance of the economy. Former President Trump PERSON kept up his attack on Republicans NORP who supported his impeachment though Congressman Liz Chaney PERSON of Wyoming said she wouldn't stop even after she was soundly beaten in her primary. Said since January 6 DATE that i will do whatever it takes to ensure Donald Trump PERSON is never again anywhere near the oval office and I mean it. And there was nothing subtle about the inflation signal we got out of Great Britain GPE coming in over 10% PERCENT Headed even higher. I don't think I'm overdoing it using that language. Becoming entrenched. Reading me minutes TIME you have to feel that this is a sort of a doveish lead and it supports chairman J Powell PERSON 's tone at the news conference following the June 27 DATE meeting beneficial noted that Parts of the economy notably housing. Just take a look at the markets this week DATE with the SMP 500 CARDINAL shooting up on Tuesday DATE only fall back down to earth and beyond on Friday ending the week DATE down one. Two% at 42 28 DATE and the Nasdaq was even worse Climbing nicely early in the week DATE only to plunge on Friday DATE ending up down two CARDINAL . Six% GPE help no doubt by concern about And they got just under three% 297 CARDINAL . To help us understand what the market may be trying to tell us welcome now Bob Prince PERSON he's co chief investment officer for Bridgewater Associates ORG and Ed PERSON Hyman chair of Evercore ISI and vice chair of Evercore Partners ORG so On both you back to Wall St. It's really a pleasure to have you. And let me start with you. You follow the economy and what's going on in the economy? We've talked about the markets. We've talked What's the economy telling us Well you can't cut.
We've talked about the markets we've About the fed ORG what's the economy telling us Well, you kinda make two parts to it. Obviously, one CARDINAL part is what the real GDP is or auto sales and there's inflation An inflation is by far the more important part right now but on the first ORDINAL part Economy is doing okay. As you know, we serve a companies And our retail survey dropped sharply this week DATE but still pretty elevated Housing is really getting hit But on balance economy is doing okay I think it's probably going two CARDINAL or three% but headed to one% ORG I'm sorry bank bank loans came out this afternoon TIME and they're up 11% PERCENT now. And retail sales this week DATE we're you know pretty decent On inflation which is much more important I I'm pretty convinced that inflation is slowing Of oil prices came down gastling prices came down And In the weeds used car prices dropped about three% GPE and the latest month DATE And we survey retailers pricing power that's now plunging you've heard the stories about the inventories being high and we have been tracking that for a long time it's now really coming down But the most important part and we don't give my state on this or wages. And obviously the labor markets are very tight But they had from the conference board this week DATE A measure of CEO confidence with almost a record low. And another survey That showed 80% PERCENT of workers were concerned about policing their job. Go go figure that But we serve a employment agencies every week DATE And ask him among other things about wage pressure and that's now pretty clearly hooked down So I think you're beginning to see some moderation in wages on top of you know prices now cooling and the economies calling So Bob Ed PERSON sees inflation started to come down. Questions how fast is coming down but starting to come down. How do you see it? And is it coming down enough and fast enough so the federal not have to go much further in red hikes? It's definitely But the question is where is it settle out The markets are discounting The markets are discounting two and a half DATE And you know, we're coming down from six So, or higher on the core, right? So, but there are really two CARDINAL big imbalances in the economy right now that are need to be resolved through this tightening cycle and we're we're still in this tightening cycle It's it's too early to really see the effects it hasn't been that long to see the effects and so chances are you're gonna get more that weakness as you as you go along. But there are there are two CARDINAL big imbalances in the economy right now that that they're gonna have to To the output capacity of labor Over the past year DATE , nominal spending is up 10% PERCENT . And incomes are up 10% PERCENT , and if incomes are up 10% PERCENT , that gets spent, and it, and you get more spending at 10% PERCENT . Yo, you gotta bring incomes down. And if incomes are growing by 10% PERCENT but labor can only produce goods at the rate of four% you get a six% NORP inflation rate And that's the basic that's the first imbalance and that's the basic cause of the inflation that we have right now. It's really not the supply chain. It's just too much spending Which came from the monetization of government data and the fiscal stimulation. The second ORDINAL imbalance is the level of nominal spending in relation to bond yields. So nominal spending is even higher above bonus than it is above output. You know, seven, seven%, above bonus. So, it's the highest in 60 years DATE . So, if, if, if Spanding WORK_OF_ART , if people's incomes are growing Well beyond bony yields it's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit and so
Bony PERSON yields it's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit so that the the credit numbers it is referring to loans up 11% PERCENT You know, that's a backstop. The economy and spending. So, so it's it's the high level of spending an incoming relation to interest rates and and labor, labor production, It's the availability of credit to sustain that and it and that all means that you have to get a tightening monitoring policy and it's sustained tight into monitoring policy to bring about an equilibrium. So, it strikes me to Bob PERSON brought back to wages pretty quickly It's one of the issues here where did you say that's the hardest get your arms around where are with wages and that wage price spiral because in fact if we are gonna have continuation people are gonna wanna make more money they're gonna go to their bosses and say you need to pay me more Well Now, I really bearish So they're not gonna be happy if you have a CO one but your Bob PERSON and I think about the same way. But money growth has been slowing for about 18 months DATE . We'll talk about that because it was growing gangbusters for a long time. Right. But you're saying it's turned around. So, in the conventional way, you had the checks, you had quantitative easing in low interest And so money growth got up to almost 30% PERCENT Which is Extremely fast and that's why you have the strong number growth. Now, with figures I got this afternoon TIME on bank deposits, money growth is well less than five%. And so we've set up the mechanism for this novel growth which is way too fast to slow down but that's what has to happen and obviously, this is a really interesting thing. If it slows down, Come out of real growth or out of prices. If you have your 10% PERCENT normal growth which everybody can understand I think Right now it's about one% ORG real and a nine% price right and if you go to say five% nominal Of what's the mixed in? Right Should that fix the inflation problem or at least take us a long way to fixing it Your total in an economy they're they're total sources of funds is your sources for spending and there are three CARDINAL sources there's money There's credit and there's income, right? And so, when you get the tightening amount of policy, they're contracting money and that's absolutely right. The first ORDINAL effect of a contraction and money is on asset markets. Because if you think about the printing of money by the by the federing of the Central Bank ORG they print the money and then they go buy bonds or they print the in that money then goes into stocks so that money had more most directly effects of financial markets Credit more goes in to spending, right? Because you know, you take out an auto loan to buy a car. You don't take out an auto loan to buy a bond and the fed ORG doesn't print money to buy a car. They print money to buy financial assets. So, so what you have is a push pull The contraction in liquidity from the central bank is a drag on the financial markets While they're expansion of credit And so you've got you got that work in both directions right now. Credits going up that sounds like it's good it's gonna spur growth but that makes Like that's actually gonna make me inflation Does a fed ORG need the credit to come in. So, probably. So, in my view of it, which is a straight Milton Freeman PERSON take of it. Of those three CARDINAL pieces that Bob PERSON point out The first ORDINAL one is where it starts. Is money growth And I track global short rates. It's a global economy and they've a higher impact on the US GPE economy than fed funds and they've been going up for about 18 months DATE . Same time that money grows have been slowing. So, I think we're pretty deep in this and we had a pretty good drop in the stock market to your point And and now inflation's coming down. The markets are Beginning ORG to think that this is Introduction.
To your point And and now inflation's coming down. The markets are Introduction to the next chapter That the next peel of the onion. Exactly right. So, the money is the first ORDINAL thing, right? But what that and money is the first thing but it needs to get to the second ORDINAL thing and the third ORDINAL thing to have the permanent effects right which means Have to be in a tightening cycle for long enough for that to happen. Right? And we've been in a tightening cycle for how many weeks DATE ? Right if you look at global Exactly. You have to be in a long enough, right? And so, you know, as we look forward We think that there's there's gonna be it's too early to tell really how this plays out in terms of whether it's wheat growth or high inflation or which one but Probably gonna get some combination of wheat growth, high inflation, and rising interest rates. Right And all three CARDINAL of those are are rough on asset prices Is gonna be determined mostly by how aggressively the fed ORG . And other central banks tighten and and stay tight if they have to pay the price of a downturn. What are we doing in the meantime? Bob Prince PERSON and Ed Pimon PERSON will be back with us for more Wall St Week after the break. When you think of cutting edge technology at sea. You might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy. But could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. I'm from shipping. Output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement? To help reduce the emissions from these well stocked maritime hemis. New construction contracts faltered and while unemployment actually went down Significant was back to back monthly DATE declines and paying jobs. The bottom line seem to be that the economy was beginning to move forward but with many are lagging part And overall at a pace that would embarrass a tortoise. That was Lewis Rockets PERSON around Wall St wave back in August of 1991 DATE when the United States GPE had just come off of a roughly mild and short recession the number one CARDINAL song if your murder was Brian Adams PERSON everything I do I do it for you and the top movie was terminated too judgment day still with her Bob Prince of Bridgewater and Ed Hyman have ever courage so it Bit of a different world today DATE , Bob PERSON . For example, on the job situation, we still have a pretty robust jobs economy.
Hey Bob PERSON for example on the job situation we still have a pretty robust jobs economy but for everything we discussed before about the uncertainty of where we are on the tightening cycle what comes next what does that say to an investor Well right now we're in that in between stage right now right so you if you if you go back just not too many months It it became evident that we had a self sustained inflation that there was gonna be a tight near monetary policy the market's priced that in yields went up You got to take me in a policy it's still happening it's not over Marcus LOC got a little bit excited about the dip in some of the inflation. They started bite on that yield. But that we've already given up half CARDINAL of the yield rise that occurred and that actually means the fed ORG needs to do more than if the yields had stayed up where they were, right? Including equity. So, So we're still in this thing we're still in this tightening cycle And like I said there there are really there's gonna be a mixture of three CARDINAL things and you don't know what the mix is yet cuz it's too early to tell but you're gonna get some mixture of wheat growth, high inflation, and rising interest rates. The more the interest rates rise, the more it's the wheat growth, Let's see interest rate rise the more it's the high inflation The fed ORG takes the foot off the brake you're gonna that that inflation improvement's gonna go away and you're gonna you know they're gonna favor growth so you don't know which which how they're gonna play it quite yet. So what we try to do in this kind of environment is is maintain some balance, right? Diversification, obviously, don't Too heavily committed to anyone direction but also even within the equity market you know structuring equity portfolios that have AA cash flow and balance sheet base under them so that if if the tightening is very aggressive that there Strong enough balance sheet to hold that up to to sustain their their position in the markets or sustain a positive cash flow and I think that their companies that are you have a lot of debt in relation to enterprise value or vulnerable, profit margins, that sort of thing. You know, are they are the type that are Vulnerable for that environment. An awful lot hinges on the fed ORG . Surprise, surprise. Jackson Hole GPE coming up. Next week DATE , okay? A lot of people are in paying attention to Jay Powell PERSON . We used to say, remember, last year DATE , at this event, he was talking about transitory still. That doesn't work so well this year DATE , right? So, how much guidance can the Fed ORG give us what exactly where they're heading? Well it's hard to hard to know I do think we're gonna get a financial crisis somewhere Pretty soon. Always been part of the of the tightening cycle But like you point out David. Yo ORG , last year DATE , it was really about transitory. He had five CARDINAL Went through five CARDINAL different things that would prove transitory And I I personally think the fit is now on the other side of the wrong foot. They're doing the entrenched and you know, a year ago DATE , I thought Bonnie PERSON is a go to five% and fed funds go to five% and I'm not quite sure what's happened but your money growth did slow dramatically And combine prices here and come down Dramatically and now I'm seeing pricing power coming down and so I think we've made a lot more progress on inflation than I expected and and that's why the market was going up until today DATE but that's that's if inflation keeps coming Then the market is gonna appreciate that. Think I don't understand Bob PERSON we heard why Ed PERSON thinks the fed ORG stop maybe he's got a bit easier actually with some of the things that have happened but financial conditions Have not tightened. Actually, if anything, do that in someone looser. That makes the first ORDINAL job harder, does it? Now, Literally PERSON the first quarter DATE that markets were doing the Fed ORG 's job entirely. Yeah. You know positive signs inflation you know they actually pull back and so bonus came back down equity yields you know came back down And so You know that as you said about half CARDINAL of the tightening that the markets were applying has been retracted If if you.
So You know that as you said about half CARDINAL of the tightening that the markets were applying has been retracted If yields had stayed where they were It would be that much less that the fed ORG needs to do but the fact that the yields have actually dropped some and can kinda give him back some of the work that they were doing. It's that much more that the fed ORG needs to do. And so I think you know it's into Referred to last that you know you you raised it and then you know we Last year DATE Jackson GPE . Yeah. They were clearly wrong about transitory inflation if if you actually look at the indicators that they follow and they tend to be lagging indicators I haven't heard yet an explanation about how they think inflation, why they think there is an inflation, why they think that that was wrong, and I think that that causes some cause you to question The the how well this this process is gonna be manage is gonna be very tricky. Powerful point I think does the fed ORG need to explain to us what went wrong and why they're not gonna do a mistake again for us to really believe in this time. Oh be helpful. But you know from Vanish NORP point as you can see What they missed was that fiscal stimulus quantitative easing led to a 30% PERCENT increase in the money supply and that did it If you look back at that Jackson Hole FAC they completely missed that And my prices are coming down all sorts of signs that are early signs and so the job is not over by any means. But there's progress and if you look back like pickate the 70s when inflation peaked The stock market started to respond to that. When you had a very high inflation period, like we have now. Do you agree with Ed PERSON that in all likelihood we'll have some sort of financial crisis? So that's what happening happens in serious tight I'd Odds are pretty good, yeah. Yeah, I mean, we haven't had enough taking down to really have that Odds are good. Yeah. I mean, we haven't had the downturn yet. If there's gonna be a downturn, it hasn't happened yet. It's gonna be hard to bring inflation down. Gonna bring nominal spending down from 10% PERCENT to five% Without a significant An incredible you need to slow credit growth by about half CARDINAL money growth is slowed but you need to slow credit growth in half CARDINAL but it's still rising you're gonna have to you're gonna have to hold interest rates up enough and that's when thing that's when bad things happen Thank you so much. Coming up, we'll take a look at what's coming up next week DATE on global Wall St. That's next on Wall St on Bloomberg GPE . No one covers the world like bloomberg PERSON . In the coming months DATE do you see that coming 24 hours TIME a day. Bloomberg PERSON your global business authority. This is Wall St Week ORG . I'm David Weston PERSON . Let's take What's coming up next?
I'm David Weston PERSON . Let's take a Starting with Julia Sally PERSON in Singapore GPE . Thanks David after unexpected cuts to the medium term lending facility in China GPE we'll be looking to see if the banks follow suit with a cut in the loan prime rate also on the Slater PERSON interest rate decisions from central banks in South Korea GPE and Indonesia GPE inflation figures from Singapore GPE and Hong Kong GPE trade data Earnings across the region include Qantas Petro ORG China GPE and food delivery giant meat one CARDINAL Bloomberg PERSON intelligence forecast Chinese NORP companies may be set to report their worst earnings The focus in Europe LOC for the coming week DATE will be the energy crisis in Europe LOC and we have a lot of developments in the week DATE prior you had the Ryan PERSON dropping to levels that made it untenable to have shipments across it you had record high energy prices in France GPE and Germany GPE you also had Matt Gaps PERSON prices New records as well. So, as we head into this week DATE , the question is going to be, how will this impact industry? How would impact individuals? Will there be more demand rationing and demand destruction? We've already seen some of it with different industry having to shut down power plants but how much worse can it get and what will be the impact on the economy? Big weekend economics we have the Jackson GPE wholesome posium coming up and I think our Bloomberg GPE economics team really focused to hear some hawkish comments from chairman Jay Powell PERSON reassuring the markets there was no Dovish NORP pivot and that we are still ago in September DATE for 50 or 75 CARDINAL basis Away from economics back to some of the fundamentals as well. Big week DATE for earnings too. Zoom of course the video conferencing company. How do they sort of continue to grow in the face that further reopening trade maybe less demand for that product? Finally peloton. We've heard a lot from this company about Some of the bikes at home, a lot of cost cutting initiatives, all the help sort of get that company back on track. That too will be a key focus for us next week DATE . Thanks to Julia Sally PERSON , Danny Burger PERSON , and Taylor Riggs PERSON . Well some of those who maybe caught are those so called zombie companies who've loaded up on debt when it was cheap. International finance. That's next on Wall St Week on Bloomberg PERSON . Hey Facebook crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs cure. For something Universally important to human life as sleep. Mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understanding.
Seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understanding It's easy to memorize things that makes you smart if you can spit back a lot of facts but if you wanna be wise if you really want wisdom you gotta know when and how and why to use that information And that's what you bring figures out while you're sleeping. Crypto Have a world of young people. That one their own financial system. And their own culture. And it is very powerful. And I'm a big believer in it It was nice while it lasted all that support from the fed ORG from oh interest rates. Range. Enabled in large part by the financial backing from the congress ORG and the treasury we will continue to use these powers forcefully proactively and aggressively until we're confident that we are solely on the road to recovery. All of which allowed companies to Leverage which we've seen over the past 3 or 4 years DATE is that sustainable But now those happy days DATE are over as the Fed ORG has reversed course and says it will keep raising rates until the inflation dragon is slain the idea that we are going to start cutting rates early next year DATE when inflation is very likely going to be well well in excess of our target I just think it's not realistic Leave all those companies who borrowed so much. Well, at least some of them are so called zombies. No not those zombies companies that don't generate enough cash to pay their debt and that leads economists like neuro Robini PERSON to say we're going to see some of them fail which may just be what we need to get to the other side Zombie PERSON Oh rate negative rates Using now that the weather can tighten Inflation is higher that zombies are gonna collapse. And to take a series of strange and exotic world of zombie companies welcome to Sonia Gibbs PERSON she's managing director and headed sustainable finance at the Institute of International Finance so Sonia ORG thank you so much for joining us on Wall St Week let me start with those basic questions what exactly is a zombie company and how many Them are there out there First ORDINAL of all, to take a step back. What you need to think about is that over the past 10 or 15 years DATE , global debt levels have skyrocketed. We've had very low interest rates and for example, non-financial corporate debt around the world is now close to 100% PERCENT of GDP. More than double what it was a decade ago DATE so that's a very worrying backdrop And so what we mean by zombie companies is a company that essentially has to borrow to keep going they're highly leveraged they're not growing very fast they're revenues are not up to par and at the moment they face a very difficult situation you've got higher input costs so your commodity prices are higher Ages are rising at the same time you don't earn enough revenue to cover all of these higher costs and your debt service so if you have a ratio of revenues to interest costs that's one CARDINAL or less if you can barely cover your debt service cost we call you a zombie company and it's Good name it's very evocative And for how many it means difficult to calculate right because for a lot of firms that for example art publicly listed the information might be less available it might be smaller non-public companies but
Right because for a lot of firms that for example art publicly listed the information might be less available it might be smaller non-public companies The Federal Reserve ORG estimates that between five and CARDINAL 10% PERCENT of US GPE firms fall into this category. It's also important to remember that this is not a static world. It's not once a zombie, always a zombie. Conditions change and in fact, becoming a zombie company is a little bit cyclical in the sense that when times are good, maybe interest rates are low, growth is high, maybe you're not a zombie. But then, you know, bad things happen. Pandemics happen. Shocks happen. Interest rates go up And a company that was formerly doing reasonably well Might suddenly fall into the zombie category. So so you mentioned the overall debt load it's true certainly in the United States GPE and not just in United States GPE and part because interest rates are so low there's some very very successful healthy companies that loaded up on debt cuz it was so cheap but and whenever we've talked about this risk in the last few years DATE I said don't worry as long as interest rates are low we're fine it looks like those days maybe on their way We're gonna have higher interest rates. So, what kind of pressure is that put on these zombie companies? Well, I think it's a good analogy, right? It's all fine until it's not and so you've had AA kind of a confluence of factors that have hit pretty much at the same time. You had a pandemic which hit growth. You had commodity price shock. You have writing inflation. You have Interest rates and you also have firms who's who's business models. For example, have been entirely changed by the pandemic. I mean, amongst the list of zombie companies, you might find a company like WeWork PERSON , you know, a company that has been very successful but at the same time, the pandemic has changed a lot of things for that for that company Carnival ORG cruise lines. There's another good example of a type of company who's now in the zombie category or some of the meme stocks. You know, AMC ORG , your game stop. So, these are really household names and I think that the difficulty is at a point in time when you've got wages rising, when you have higher input costs. These firms Be able to borrow as much as they need to borrow to keep afloat. Zombie companies concentrate in certain sectors or in certain size corporations? I think it's fair to say that the the sectors that are worst off in terms of percentage of zombie firms are probably in manufacturing and in retail and retail of courses in industry that's undergoing secular change over the long term as we move to sort of more online no less brick and mortar think there are there are underlying structural issues there and in Sector ORG . In any case, but I think some of the companies that are hardest hit tend to be smaller firms. And if you think about a small company, there's sort of inherently face greater credit risks than some of the larger, better established companies that have long standing histories and track records in borrowing. They're you know Familiar to investors smaller companies have a harder time accessing funds especially when when borrowing conditions are are difficult and with some of these companies having fallen on hard times during the pandemic you know there are estimates that suggested in some cases as much as 25 30% PERCENT of the small Companies especially if you include unlisted companies could be falling into this sort of zombie trap I wonder saying about the larger effects on the economy. Obviously, we don't wish ill for any corporation but there's gonna be a lot of stress, put a lot of the companies you're describing right now. And so far is that all gets sorted out to use a euphemism perhaps? Is there some benefit for the economy and redeploying the capital they represent into things that might be more productive than their I think we might wanna think about this in a short term and a long term context. So in this short term It is very helpful for the economy to keep these companies afloat and you could think of the example of Japan GPE here which has spent over 800 1 billion US dollars MONEY since the pandemic hit to support its companies so you avoid bankruptcy, you keep people employed, you keep these company the float, but there's Longer term cost to be paid for that because when you think about it It's being spent to keep zombie companies afloat Is money that could be more productively deployed elsewhere. You could
When you think about it money that's being spent to keep zombie companies afloat is money that could be more productively deployed elsewhere you could put it into capital spending you could put it into infrastructure you could put it in a new industries new technology is maybe in the ESG world or or green That can really deliver a boost to productivity and growth. So it's kind of a foregone opportunity in that sense. Sit down for the reason you describe in the example of Japan GPE is a good one. It strikes me. There are political consequences of letting zombie companies go belly up. You know that the politics of these things are are always difficult, right? I mean one of the the conclusion is that you can come to is it if you have a high proportion of of zombie companies if you have companies that you're worried about keeping a float there's political pressure to keep that going. The more that borrowing cost rise, the more the interest rate rise, the harder time these companies will have keeping going. So if you're in a world where inflation is rising and you have central banks having to make a very difficult balance Controlling inflation and supporting growth which can involve supporting some of these less profitable companies. You know, it's a it's a it's a rock and a hard place. You know, where do where do you draw the line? On you if in fact the fed ORG could have been held responsible for this may be company and maybe it's not what they're intent but it's certainly was a consequence of extraordinary low interest rates for a long time. Oh I think ultimately has arbitraries of the price of money you could hold the fed ORG responsible for everything really but certainly it was an inadvertent consequence Of low interest rates. So I mean if you think of the the many many years when we had low and in some countries even negative interest rates there were warnings sounded all the time. There are risks to financial stability. There are risks to long term growth. It's going to stoke inflation. It's going to distort financial markets. Is dis Asset valuations And in fact, you can think of zombie companies as a type of distorted asset valuation, right? Because accompanying a bit cannot generate enough revenue to support its debt service and it's running costs. Arguably, is trading at an inflated valuation because it can continue to borrow at low rates. So, Sort PERSON of put it on the backs of central banks but it's it's certainly an inadvertent consequence of something that had to be done Growth going during the the after the financial crisis. So, thank you so much for that. Tour of the exotic world of zombie companies. That's Sonia Gibbs PERSON . International finance. Pleasure to be here. Larry Summers PERSON of Harvard ORG . This is Wall St Week on Bloomberg PERSON A lot of the satellites have propulsion systems. They can kinda move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a Subscription service. We'll send you an alert up to 7 days DATE in advance. If your satellite's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a clouded debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up
The collision This is Walsh St. I'm David Weston PERSON . We're gonna wrap up the week DATE once again with our special computer, Larry Summers PERSON of Harvard ORG . Larry PERSON , thanks so much for being back with us. So, let's start with those fed minutes that everybody was waiting for eagerly and they came out The markets didn't know quite what to do with them what did you make out of those minutes They confirmed what I suspected Which was that the Fed ORG doesn't know where it is That the world is very ambiguous at this point And A meeting or a very poor way to convey Collective Look PERSON the fed ORG has a fundamental problem About which it is not yet willing to be realistic And that is that it is exceedingly unlikely That inflation can be brought down to target levels Without a substantial increase in unemployment they To be very concerned about unemployment and about inflation and the reality is that it's probably not so realistic to think that they're gonna get All the way down And they don't wanna acknowledge that and that forces a certain confusion I into all of their statements I can sympathize and understand why they don't want to acknowledge that part of the problem is they've taken on an excessive obligation To communicate So I think they're in AA very very difficult situation I don't know to what extent they're gonna choose to take the pain that is ahead They're gonna choose to take it on the flation Side Remains to be seen They don't really know Hey there which way it's going to go That Materially looser Than they were when the fed ORG last met. And Middle of a tightening cycle Substantially loosening Has to make a central bank nervous David there's one CARDINAL other aspect to this situation that I think is very important and under recognized What's happening with Russia GPE and Ukraine GPE what's happening with droughts all of it they don't really fully fully internalize that oil prices and wheat prices have both come down substantially at our predic Substantially in the future. Concepts of core inflation When headline inflation was higher than core inflation Can't stop doing that when headline inflation is lower Then I inflation With respect to core inflation Median or trimmed mean Measures And so I think we've
Median or trimmed mean Measures Substantial Inflation challenge ahead of us. One of the things that fed ORG emphasize in the minutes TIME besides really being concerned about inflation expectations on the other side of that was a softening housing market. Something you referred to last week DATE on this program. Give us your take of the housing market. Some people say we're in a housing recession right now. I think you have to distinguish Movers NORP from stairs or to put a differently you have to Look at you have to think about what the right way to look at rents is. Here's what's true What's true is that last year People who were signing new leases We're paying 15 or 20% PERCENT more than they had a year ago DATE . Nothing like that Fatty into the consumer pricing decks or the feds preferred measures PCA ORG index All the fed through The small fraction of people who saw their rents change And a constant rent for everybody else. What that means is that down the road like now You're seeing inflation Substantial increases and so we're gonna see Housing price inflation in the measures of inflation that are used For another 6 to 9 months DATE that's a different thing than what builders are responding to builders aren't responding to that builders are responding to what they think the price of houses will be a year from now DATE and that come down and Building and that's what happens when interest rates go when interest rates go up in some ways it makes sense if we're gonna have Economic activity It's better to have a decline in something where we've already got a huge stock of it and it's only the new flow that's being affected Van in Continuous basis Doesn't have any duration to it But I do think we're Towards Respect the housing and I'm sure they'll be differential impacts in different parts of the country as I say my best guess is that we will have a meaningful recession sometime in the next two DATE With respect to housing ahead. We certainly saw that in numbers coming out of China GPE at the beginning of this week DATE and I wonder what you make of the Chinese NORP problems as we know there are three CARDINAL or four in their inner lock there but on the other hand is it possible that we'll give a little at least a little relief to Inflation Probably will it it goes back to the issue we discussed a few minutes ago David TIME about oil prices and grain prices Main ORG impact of Chinese NORP slowing is likely to be on commodity prices and there's a question as to how much weight those should be given as we think about our inflation rate In this country but it probably is a positive on inflation. I think the larger questions How we see China GPE in the future and how China GPE will be responding to these economic These has i've been saying.
China GPE in the future and how China GPE will be responding to these Increasingly profound events in China GPE It was taken as almost axiamatic At some point the Chinese NORP economy would surpass the American NORP economy Of total GDP at market exchange rates. Much less clear than it previously was. And I think you're seeing all kinds of challenges, for China GPE . There's the huge financial overhang. There's the where the growth is going to come from. There's the growing communist party involve You know, wider range of enterprises. There's the demographic I have been saying for some time that I think people are gonna look back at some of the economic forecasts about China GPE in 2020 DATE in the same way they looked back at economic forecasts for Russia GPE that were 1960 DATE or for Japan GPE that were made in 1990 DATE . Last one here. Toward the end of the week DATE , turkey central bank ORG made a move to try to combat inflation by you won't believe this cutting the interest rate from 14 to 13% PERCENT . This of course is part of President What did you make of that? President Erdogan PERSON is the world's first Monetary theorist. He is putting modern monetary theory into effect So far it hasn't worked very well For him Or for the Turkish NORP people I don't think that's going to turn around And I hope that the misguided accolades of modern monetary theory in the United States GPE are watching. Okay Lori thank you so very much that's Larry Summersville Harvard PERSON are very special in trader here on Wall St week. Coming up, we all know getting older makes us slower and grayer but can also make us richer. That's next on Wall St Week on Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Finally, one CARDINAL more thought. Getting old. It's one That we all have to do None of us wants to think about it And sometimes seems like some of the oldest among us may be the deepest in denial where there is rock musicians like Still performing live on stage at the age of 79 DATE or sir Paul McCartney PERSON who's still going strong way past that age of 64 he wants worried about or are political leaders in or nearing their 80s DATE
Paul McCartney PERSON who's still going strong way past that age of 64 he once worried about or our political leaders in or nearing their 80s DATE like President Biden PERSON and Mitch Final PERSON and Nancy Pelosi PERSON who snapped back and reporter 10 years ago DATE when asked a question. College privately say that you're just getting to stay on And who can forget President Ronald Reagan PERSON who in 1984 DATE provoke the age old or should I say old age question after Tumbling through his previous debate with Demo Only ORG to come back with this zinger. I will not make age an issue of this campaign. I am not going to exploit for political purposes. My opponents, youth, and inexperience. The world of business in France GPE is an entirely immune from this but by Warren Buffett PERSON who at 91 CARDINAL shows no signs of stepping down and told our own David Rubenstein PERSON his goal is to keep Quite like to be the oldest man that ever lived actually. And who knows maybe Really just get older. We get better. Those was hoping that that may just be true. We now have a concrete, provable example, coming from the world of golf, where a journey and tour professional who'd struggle for years DATE , suddenly became a star, simply by turning 50 CARDINAL Pushing him into the older player PGA tour champions league to be sure Stephen Alka PERSON from New Zealand GPE happened to be at the very According to the Wall St Journal ORG adding that extra year has let him to make in 1 year DATE $ three MONEY . 5 million CARDINAL which is more than he made in all the rest of his career put together And if he keeps sinking extra long putts like he did to win the bowing classic Bloomberg PERSON see you next week DATE . Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE this group has broken by Bloomberg PERSON 's Amanda Companies ORG know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that soft Robot PERSON is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. For the FTC ORG , I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ?
Custom to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI EVENT ? Mobility so we have flick to switch there and really we're going to step by step electrify everything And what does that mean? Deflation is a terrible thing. Inflation you could tower. Rainfall GPE . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Francy Laqua PERSON welcome to Bloomberg Front Row ORG and there are Chel PERSON is a tighten of European NORP banking at UBS ORG he transformed the firm's investment bank he's now the chief executive of major Italian NORP lender only credit over the course of his career or Chall has had to navigate numerous crisis and now is Different ORG . Rampant inflation and aggressive central bank tightening. Inflation is biting We see for low income or lower income families Really difficult to deal with a rising cost of energy. The Italian NORP has also faced personal challenges recently including a dramatic and public legal battle with Santander PERSON over the robot attempt to hire him as chief executive. I will always be sorry for how it went this is another bank I admire a lot and that hasn't changed I think for me More about The facts. It was obviously an emotional roller coaster. From a family standpoint it was quite impactful. First ORDINAL TV interviews since becoming chief executive we talk about his new role at Una ORG credit the impact of the war in Ukraine GPE the challenges of being Europe LOC 's bank and that sent under the backle Andre Orchel PERSON thank you so much for speaking to Bloomberg PERSON so you've been in the job just over a year was it everything you hoped for more really much more yes not stressful Stressful but i like stressful I think that what has been great this year DATE is a way you create it Really welcome to me into the organization. It was full of passion, full of warmth, and you feel Energy of the people around you. People that want a new vision, a new strategy, a new direction, Ready to commit and own the future. It was absolutely outstanding. Did that surprise you? Were you expecting more sleepy bank? No but I looked at it more from the perspective of the banker numbers What needs to be done or is the value where it's not the value But when you arrive, you see the people and that makes the whole difference. So, that's what what makes it more emotional, I guess, is this like totally? Ask me once what what keeps you up at night TIME ? Well, the emotions are now very engaged And you feel a duty and a commitment to the people who are looking up at you to to take that ministers and direction And that I think puts a lot of weight on your shoulders. Russia GPE is one CARDINAL of the top three CARDINAL in Europe LOC . How do you deal with the employees in Russia GPE with your subdrian Russia GPE ? Well, first ORDINAL of all, for us, it's important to understand that We have to remember that 95% PERCENT of the bank is not in Russia GPE . No And we cannot commit the mistake of spending the entire time on Russia GPE where our emotion and the shock that we have taken Is probably driving us to do. So what we have done is we have a situation room that is fully committed to do that. We've all the skill sets but we need from legal to tax to accounting to everything else. And they work on managing our exposure towards Russia GPE . The rest of the team is 105% PERCENT to 110% PERCENT focus on running the rest of the of the equation When I look at Russia GPE separating it there are two CARDINAL orders of effects that we look at. One is a direct shock from our exposure to Russia GPE . I think that in the last 2 months DATE
There are two CARDINAL orders of effects that we look at. One is a direct shock from our exposure to Russia GPE . I think that in the last 2 months DATE We have a chip to reduce it meaningfully by about two 1 billion MONEY . We've done that actually. The team has done a great job without that costing the bank almost anything which was not to be expected. And at the same time we have understood very well and in a granular way what the risks are And we think that in Q one we took a very conservative set of provisions to try and insulate ourselves the most possible from the further effect from a degeneration of that situation. The provisions were quite large and the market took it quite well. Is that how Describe it I think so I think we what we did is during those 2 months we were able to articulate In a detailed way what is our extreme lost scenario for Russia GPE ? Converted in in numbers on hit on capital it's about 130 CARDINAL business points of capital And in the first quarter DATE we took about 195 CARDINAL to be exact. Do with this unit? Are you frustrated that you kept you keep on getting asked? Over and over. What will happen to to Russia GPE and the employees there? Well, I think that anyone who has a large presence in Russia GPE or significant presence in large in in Russia GPE is being asked it's normal. I think we'd be least strongly that Let us show you what we execute and let's talk about it then We have a number of options on that we could pursue Very much affected by the next wave of sanction Who have a counterparts what we can do what we cannot do And at the same time we should not forget that we do have 4000 employees in Russia GPE Have 1500 CARDINAL corporate clients and what people sometimes forget is that 12 50 CARDINAL are actually Europeans NORP who are trying to go through the same thing that we're going through as a bank which is deal with a situation the best way possible. Do you have a preferred And actually is there a situation where you just say we need to get rid of it. What do you say to the critics? Let's say Andrea PERSON you should have gotten rid of this. For the cost. I think I review is Number one CARDINAL my preferred route is not necessarily root but can I can be executed in the same way that we have given detail of how much of our crossbow exposure we have reduced We could have reduced a lot more If it wasn't for successive ways of sanctions that have closed the window on who we can deal with What transaction can we do and in which timing Vaseem ORG applies to our local presence. The solution very much depends on what is allowed to be done by a complex web of sanctions that we have and by who are our counterparts. We believe very strongly that If we want to be consistent with what VU has decided We need to consider all the options in a way that they reflect fair value because this is a primary objective for Providing. Right. Too much value to accounter part. Let's put it this way. But he's not justified and at the same time balancing what is leading the best interest of our stakeholder and investors. How worried are you about inflation about the cost of living? You're so tied to the Italian NORP economy. And this is an economy in terms of energy, in terms of also exports and imports That's one CARDINAL of the most closely linked. We are tied to the Italian NORP economy We're less than people expect because we are about 40% PERCENT of the bank I think in my first year DATE of operation being tied to Italian NORP economy hasn't been great Good gross good dynamics stable direction of travel. Is that the driving effect? Hey Facebook drag effect. As we look forward Be a deceleration. We have two CARDINAL central scenarios for ourselves. One CARDINAL is a Slow ORG down. And the other one is a depression. At the moment, we see a significant slow down as the central scenario although Has not been affected at all basically over effects beyond prices. So what we're seeing is inflation being the precursor of more. Inflation is biting We see for low income or lower income families.
Cursor of more. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising custody of energy. We also see But for companies that had investments or that were dependent on energy or on grain to certain extent the whole value change has been completely alright Destroyed and so they need to reassess what is their position Change for sources Redesigned their models But at this point in time this translate You know slow down I've investment. We haven't seen anything else. We do believe that going forward it will be a lot more disruptive. Tag on the product may read made in the USA GPE but the Often PERSON says made in India GPE . Alphabet sun PERSON darker IBM ORG 's Irvin Krishna PERSON micron technology Sanjay Mayhotra PERSON and that's just And that doesn't count Indians NORP running companies all over the world. Incredibly competitive education system if you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up about Visas GPE for the US GPE and it's Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Do you worry about a policy mistake from the ECB if if you have this possible recession or environment They don't raise rates. What happens to inflation and what happens to all of your Italian NORP clients or European NORP clients? Well, it's a very tricky economic environment for ECB but also in the US GPE . Because on the one hand, you have inflation but the inflation is generated by your specific segment of the economy. A energy I'm not that sure that raising rates a lot will cool that down because it's very concentrated and it is linked to a dislocation between a friend demand The rest of the economy however We all agree that he's slowing down and maybe tilting into recession Rates Issue. So, it's very, very tricky to manage and yes, we'll concern to finding the right balance. I think that getting to more neutral stance towards the oh is probably The moment you go up a lot from there it depends very much on what the rest of the academy is doing. Between Italian NORP B two CARDINAL How much of a warrior is that? Well, you always have a bit of that every time that there is a crisis there is a so-called flight to quality and that happens. I think that like for many other things, we need to see how old the economies of Europe LOC are gonna perform in fact During this this environment And I think what I was standing in Best was the other day is if you look at Today DATE . We are 5 months DATE into a year You do not see any deceleration of the economy You seem flation, you see a rising rates, you see some very worrying sign You anticipate a social and an economy impact from the war but you're not seeing yet. That kind of degeneration that the market is expecting. What is the market looking at? I mean, this is like the market seems to be all over the place. We could be up. We could be down.
That kind of degeneration that the market is expecting. Looking at. I mean, this is like the market seems to be all over the place. We could be up, we could be down, or we living through a correction. Well, I think I've, I read, an interesting report from one of the That covers us but we'll remain on named here but but was asked to do a parallel between environment of today DATE and the 70s on inflation Which tells you what kind of mood Worry exist out there Personally I don't think it's gonna be that extreme because I think there are a number of amortizers I mean if you look at the facts Italy GPE has managed to Tribute or re Change the average in of its energy to a significant extent of its value change so we now go to Another places to get a lot of a gas or we will be going if you look at Poland GPE they have found a way to deal with Norway GPE if you look at Bulgaria GPE they connected their pipes towards Greece GPE and the guests that are rushed from there so Europe LOC is adjusting The question is how much time there is but Europe LOC is adjusting. Kind of earthquake way because you could see if there's oil and gas and bargo from Russia GPE what happens to this continent? It depends on timing. VC PERSON 's that's why the The economic environment that we're looking at it depends on timing and extend of the Breakage away from Russia GPE and to a certain extent from Ukraine GPE If that is done very fast and completely As you said the impact will be quite dramatic Significant longer period of time the impact will be less dramatic do we have? A significant alarm period of time. I don't know. But that is the key. And we always talk about gas but we also need to understand our dependence on our commodities. Palagiam Lithium PERSON a whole of other things that the entire value chain was predicated on connections with Russia GPE and Green PERSON 's connections with Ukraine GPE If that changes from 1 day DATE to hour the shock is very high. You were talking about a political stability in Italy GPE . We were joking about the drug. Do you worry that actually politics and it so he has always been quite messy that this political instability comes back and hurts your bank? Well politics in Italy GPE if you're Italian NORP and Italian NORP or politics in Italy GPE but Italians NORP have been able to go through it And A lot of trust in the country and and I believe the country has In a certain way And in a way I am much more nervous about the more general impact on economy in Europe LOC the more general social impact on the on Europe LOC immigration things like that that are going to touch not only Italy GPE but the broader continent. How much do you like taking care of risk? So I wanna talk about a little bit about what Inside uni credit. Do you feel like you're a risk manager? Is it about also cutting costs? So, how do you, you have one of the most generous plans actually for investors out there? How will you stick to it? Well I think Stick FAC to it I think We have said very clearly that we felt that the execution of unicorn unlocked would yield to a certain level of profitability A certain level organic capital generation based on that We could have very generous. Yes. Distribution to our shuffled. Was that pretty Russia GPE ? That was pre-rush. So Actively the plan anticipated that our capital will remain stable through the period at the top end of our peer group and that we would distribute only the access capital we would generate every year DATE . So, in in that way, it is prudent. It is coordinated to us executing the plan and all of his slavers at the same time because of where we're coming from There is a lot of value to be created so that is what generates Vision that we have Then we get to the invasion of Ukraine GPE . At the moment.
It to be created so that is what generates the distribution that we have Then we get to be invasion of Ukraine GPE At the moment what we have done is we have changed our macro scenario reference from what it was before to slow down. From GDP standpoint it brings about two to two and a half CARDINAL points less surgery because when we were anticipating from an inflation standpoint it takes to a couple of percentage point more inflation than we were anticipating with peaks in certain countries obviously In that environment We can still execute let's say the unicorn lock plant as it is if we keep our eyes on the ball and execute as we should be because on a way the GDPD celebration is in part compensated by higher rates which are good for banks like like When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. From Tina shipping is the key component of global trait about 80 CARDINAL or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. Of all the world's this huge Three% GPE be not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Had one CARDINAL of the most colorful careers. I don't know if that's the right way to describe it. I don't know how you would describe it. It's really in the 5 years DATE It's not been dollar boring following your career moves do you feel vindicated that you were awarded that amount of money with what happens on time there I think the I will always be sorry for how it went this is another bank I admire a lot and that hasn't changed I think for me it was more about Confirming the facts The truth about a new existed And that has been done and it's on controversial. I mean, you will find it black or white. Through the process that has happened That for me was very important because a number of stories were were written at the time. What happens then I mean obviously something there has appealed we'll see But for me the important point was that The truth is very facts are there and at least mentally I have moved on. 68 1 million QUANTITY without never starting a job but also to try and understand what labor laws and everything like that works. Do you think it's changed? The way we look at banking walls and Don't know if it has changed what I know is that we shouldn't forget that Banking is a highly regulated industry as a as a result of that senior jobs have a very large component of deferral in their compensation. Invite your kids 7 years DATE And more than 50% PERCENT if not 16 CARDINAL certain cases of your compensation is deferred over 7 years DATE . If you do the math that means that at every point in time you're gonna have between Four X CARDINAL of your compensation Deferred. Ehm but it's just index to the shark.
At every point in time you're gonna have between Four X CARDINAL of your compensation Deferred. Ehm but it is index to the share price of the bank where you are and if it goes up X becomes even more. The difficulties when you change organizations. What do you do You either have the new organization that That Deferral Or you don't move Because of in effect that deferral is your entire savings So, I do think that although these are large numbers, I need to be put in context of how they got there. Usually in most cases in all cases Organization ORG who has Assumes that liability. So, that number is liability and deferral. Is plus if you ever thinks that occurred because of a case but that is what it is. It was an emotional roller coaster. Is it something that you've put behind or is something that you don't think about? Well, at the beginning, it was obviously an emotional roller coaster. From a family standpoint it was quite impactful and I think personally given the esteem ahead for that bank it was quite impactful I think the the important point was I Once I went through the preparation of the case I detached and left other people deal with it and it was quite fortunate that those people were excellent And then I trusted the process a lot of people told me not to trust the process but I did Anything LOC ended up being worsewall. And they're talking me a little bit about your working from home policy. So do you think COVID has changed everything? Is it problematic for a bank to let people work from home? Let's say that what COVID has done both from a standpoint of clients and for the standpoint of employees is More remote Aisle PRODUCT . Flexible. I think that is not a bad thing. I think it has taken away FaceTime To a certain extent I believe strongly that being at work is important That's how you establish the culture. How you train people How teams can interact with each other and brainstorm and come up with a good idea. On the other hand and we had started to do something similar to UBS ORG at the time you need to give people the flexibility to organize their lives and you cannot say it's nine to five CARDINAL or it's whatever it is and that is it. So if you allow that flexibility for people Organized their lives and you've been need to take a Friday DATE morning And then see the soccer match of their children And then work longer on the Friday DATE evening TIME That's their their choice but I don't think you can replace Brainstorming PERSON teamwork. You know, if you look at the agile way of developing our new our new initiatives around IT. Come from representative from business, technology, compliance risk, all being in one CARDINAL room, and instead of saying you do pieces, how do we resolve the mortgage product? You can do that in the office. You can do that remote. Talk to me about attracting talents. Would you, do you worry about, you know, some of the bright, young minds going to. JP Morgan Goman Sax because they pay more. Would you worry about them going to crypto or Google because it's exciting. Well I think what I have found is that the bright minds As attracted by money as they are and probably more by Version PERSON . What's the challenge? What do I learn Is this company doing things that I am proud of Care for the environment. Do we care for the communities? Will I be followed in my career and develop which is why we just launched the university These things especially in the early years DATE Quite a lot of space in their decision As they move through And they come in and they move through when what takes places how do you treat them how do you track their career manage their career do you give them opportunity that's why I think we are very fortunate that you try it
Remove fruit when was thick spaces how do you treat them How do you track their career manage their career? Do you give them opportunity? That's why I think we're very fortunate. I can have a young person from Bosnia GPE who start in the leading back in Bosnia GPE . Does a tour into Germany GPE Serbia GPE and then A skill set that has been refined goes back and it's a bank in Bosnia GPE not many groups can do that and I think that's one of the attraction but we have. Would you like most about being to the executive? Trying to make a difference I have been told by many people that no you know this cannot be done or this is difficult this is a little bit my chance to try and do what I think I it's right What I think it's right is usually I get it from talking to people who and if I can make a difference to Uni Credit and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And I helped What are our principal what we stand for? I think that will be a win. Chief executive job came up? Would you be up for it? I love you and create too much. Thank you so much. Thank you, Francine PERSON . Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure for something Universally important to human life as sleep mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our It's easy to memorize things that makes you smart if you can spit it back a lot of facts but if you wanna be wise if you really want wisdom you gotta know when and how and why to use that information And that's what you bring figures out while you're sleeping. People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money at the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. BSO now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus a claimed art carnival concerts visit PSO ORG . Org slash now where the music plays on BSO season sponsor Bank of America ORG
So, this is a lab. Yeah. Flex line. Where they come in. First ORDINAL , it's just the body. That's what I call it. The body of the vehicle. And then that's a pieces that have to be assembled. Put together, tested. Now, I'm told you're not building a quote unquote car. No, I'm not. Don't say the word car. It's a vehicle. Huh. Yeah. It transportation vehicle. You arrived in this vehicle? Can we get in? Of course you can. Okay. There it is. Okay. So, comfortable. What? We don't want you to think about driving. This is why it's not a car. On the Zukes Factory Floor ORG CEO Aisha Evans. Long range where she says they're not building a car but transforming ride hailing as we know it. She went from Senegal GPE to Silicon Valley LOC chasing a career in technology where she could have a global impact after 12 years DATE as a top ranking executive intel Aisha PERSON For $ one MONEY . 2 billion CARDINAL . Joins us now for a look at the road ahead on Bloomberg Studio PERSON 100 CARDINAL . Aisha. So great to be here with you. Thank you for coming and thank you for having me. Came to Zukes as CEO in 2019 DATE over from Intel ORG Just a year later DATE you sold it to Amazon ORG . How did that happen so quickly? It was a journey. It takes a lot of capital to take this endeavor all the way it's it's a worthy one When we looked at the ecosystem when we looked at everything that was going around we had to decide whether to stay private or whether to get a long term oriented partner like some of our fellow travelers Then the pandemic hit that brought a lot of clarity shall we say? And so the opportunity presented itself and we we went for it. Why is Amazon ORG the right fit? First ORDINAL of all there are great company They have created both organal and adjacent multibillion dollar MONEY businesses There are long term oriented Very purpose driven so That matched our ambitions. They've never owned a car Yeah but we're not a car company. Exactly We're a raid hailing company Talked ORG to me a little bit about how you got to Silicon Valley LOC . Jeff Bezos PERSON or Andy Jassie PERSON tell us about your upbringing. I was born in Senegal West Africa LOC My parents, I thank them to this day DATE . Sort of made school an implicit expectation. It was an up Discussion. Very early on. I showed an attitude and interest Not so much in biology and in building things and so they cultivated that and then I bounce back between Paris GPE and and Senegal GPE . Learned a lot about what technology does to people's lives. And what it makes possible. I literally had a contrast every Buttons and so computers were coming online. Not the internet but the what the internet was going to make possible was also coming online. The US GPE was to the place to be. To study that then basically got jobs in the industry and eventually ended up at Intel ORG in in Portland GPE through that started into facing with silicon valley and then zooks came along. I heard a story about you hacking a phone in Talk to your friends long distance. Did that really happen? Oh yeah it did. I always had a double life a little bit in terms of family, friends in different ecosystems. I still do to this guy. And so back then it was landlines. I was And my dad isn't wasn't telecommunication so if he was not confused so we had a rotary phone I'm
Was landlines? I was And my dad isn't wasn't telecommunication so if he was not confused so we had a rotary phone I'm dating myself and he locked it but obviously I figured out how to still make the phone Who wear a role models back then I mean it's so hard for young people especially young girls to see themselves in the tech Mary Curry PERSON Was and still is a role model. In France GPE you study philosophy and a lot of the philosophers are also mathematicians So they were role model and they also forced you to think To Chief Strategy Officer at In And it was a difficult time for Intel ORG . Intel ORG was kind of losing. Way. What was it like working there at that time? It was a difficult time in the sense that anytime you're successful, you earn the opportunity to talk about what's the next phase of the journey and I was in the middle of that. But it was also fun. I learned a lot. What was it like going from an established brand name Tech ORG company like Intel ORG to a startup like Zukes PERSON I assume there are major differences in culture and execution there. It was quite an awakening. So I didn't tell I was a little bit known as not a rebel but somebody who questioned things and who maybe did the normal. Oh my gosh. You know it was too slow or is this or that or the other? Agitator of sorts. A change agent I think is the elegant way of putting it and so alright when I arrived at zoo yes it was fast it was we were making decisions But from an infrastructure standpoint with I was like woah. There's reason for infrastructure and so but I embrace the journey and said okay we have to One. When you're doing what we're doing. It's not just about the technology. You have to think about the steps to getting to market. You also have to think about building the company. That it's ready when you scale if you wait until you need to scale to actually build the infrastructure bad things happen. What's it like being leading black female executive In such a white male It depends. I don't wake up in the morning thinking I'm that I wake up in the morning thinking I'm Aisha. I've got stuff to do. Meetings, decisions to make Kids to take care of For dinner is ready. Obviously, in the moment, sometimes I think about it because you look around but I I try and turn it air into an opportunity because and that's just how I I have one ones with myself and how you think about it and how you show up. It's important. So, I try and tell myself that means that I'm bringing a perspective that And that's additive And I try and also figure out a way to have what I call an inclusive environment where I see people's point of view and they see mine and I try not to get angry When it manifest itself in annoying ways. What are the obstacles that you've overcome To get here I think that often people assume both an agenda and sort of ethnicity standpoint that Not normal to be here and therefore maybe you got a discount when it's often the opposite. You have to try much harder than than others. I've had to work on Sort PERSON of how I receive information when or how I I deal with behaviors that I'm not acceptable And sort of learn when you take the high roads. I've had to find my voice and not be afraid of it and use it. Are you pleased with the change you've seen or has it not changed fast enough? I can't be pleased. I mean, I I'm pleased that there is change but absolutely not. We have to do a lot more as an industry. Why isn't it changing faster? Why don't we see More people like you in positions of power. Well, I think that's a complicated answer. I think it starts very early on. I have a son who participates in Lego Robotics LOC and we had some observations and kids are at seven, eight DATE , and you already see difference I think also from a social standpoint, around middle school, when there's a transition, for girls, maybe having a support system to stay in math, D. NORP
From a social standpoint around middle school when there's a transition for girls maybe having a support system to stay in math destifying it teaching it differently and then as people come up the ranks making sure especially for women making sure that we have a System around them so they can traverse through some of the some of the phases like for example marriage and childbirth and so on. You're building a ride hailing service, not a car. Why is it important to have a woman in the room? People of different races in the room. I'll give you a story. We were discussing pick up and drop off. And I'm the only woman in the room. Yes, I'm always in jeans and what have you but occasionally, I dress up and have high heels on. We're wearing high heels today DATE . Yup, I made a comment. Okay we have to think about it from that standpoint Because if we're giving right to customers in San Francisco GPE for example on a Friday DATE evening TIME on a Saturday DATE evening TIME maybe some folks have heals on and maybe we need to think about the pick up rages Because expecting them to go uphills in you know high heels probably not a good idea Our Tesla and Elon Musk competition Valley PERSON . We you know pay tribute to disruptors. A lot of the satellites have proposal systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver their machines yeah we offer a collision avoidance survey it's a subscription service we'll send you an alert up to 7 days DATE in advance if your satellite Come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. Just because we've installed so much more hardware in the space. You have a big collision it creates a cloud of debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the likelihood of the collisions going up We've got the information and Yes it's about renewables This is a level of uncertainty that we haven't had to deal with. Let's talk about the competition what is Zuke PERSON 's edge over GM ORG 's cruise googles way mo and if you could level with us what's their edge I look at them a little bit like fellow travelers. Competitors because we're in the same space and we're going after some of the same things but this is a big industry It's not gonna be a winner take off second ORDINAL it's a safety Product and therefore, I think it's important to lay that groundwork. Now, having said that, I would say one of the big differences is that we are going straight to what we think is the ideal product to provide rights to customers. We are not here to enhance your driving experience. We don't even want you to think about driving. So the customer experience is built in such a way that you're here to be transported. You have an app which you already know how to do today DATE . You have an app where you say I wanna go from point A to point B especially in dance urban environments. Think downtown San Francisco GPE . And we'll pick you up. Sliding doors. You step in. A little bit London GPE car but We don't ascribe to taking a car that was architected Designs for human driver and then adding sensors and computer to it in order to make it fully autonomous. What about Tesla which is write down the street Our Tesla in Elama GPE .
And then adding sensors and computer to it in order to make it fully autonomous What about Tesla which is right down the street Our Tesla and Elon Musk PERSON competition Fellow travelers. This is silicon Valley LOC . We are you know pay tribute to disruptors. Having said that we're not exactly in the same business. We don't sell a car to people. We sell a ride to people. Our customers are not drivers. They are riders. And therefore we use the same types of technology. But they are in the car selling business. How does Fit PRODUCT into the future of Amazon ORG . Well, that story is yet to be written. First ORDINAL of all, we we hope to deliver on the promise of a new segment. Sort of AA big business and be one of those in the tradition of of Amazon ORG . We know there's a world of possibilities but I tell everybody we first have to earn it, right? Before we talk about sort of synergies and possibilities and opportunities together. Oh times anything is still oh and it will be for a long time. We're focusing on building our business, getting to market, and then there's a 10 1000 CARDINAL of possibilities of things Could do together. Is Zuke PERSON 's gonna be dropping off my boxes Is that what I should expect? If that's the right thing to do and if it makes sense to do so but first we're gonna make sure to take you everywhere you need to go without having to worry about parking, having a car, and so on. What's it like having Amazon ORG as your boss It's been good. We're on independent of of Amazon ORG . So yes they are involved. We agree on what's gonna happen. Why it's gonna happen? How often did you talk to Jeff Bezos PERSON or do you talk to Andy Jassie PERSON or maybe it's Dave Limp PERSON Don't talk to them that often. I mean we have monthly DATE business review or quality business review but no it's not like I'm besties with them and we're on the phone and wrapping and chatting now. Well you must know what they're Execute get to market scale. And do you have the funding to do that? G Very well funded competitors or fellow travelers as you say. Are you getting what you need? What I need. I funding is not something I even worry about. So what's it like to operate in that environment? Where money is not an issue? Well, I mean, you have to be careful, right? Because you also don't want to be a drunken sailor and be like, oh, now I have, you still have to be very disciplined. You have to manage the phases of the business. Well, like, okay, how do we exec How do we make our milestones? How do we get to market? Where are things organized properly? How do we hire? How do we retain? And so on and so forth. How do we stay mission driven? The public seems to have lost interest in waiting around for self-driving cars. I rode in google self 2011 DATE . Wow. And I'm still waiting Able to buy or just ride a self-driving car on demand. Why is it taking so long I think in self driving first ORDINAL of all the opportunity is so clear The the beach is so broad. We forgot that big things do start small. One, second CARDINAL , it's a hard problem to solve. We talk a lot about safety And we talked a lot about human error when it comes to driving. But we also forget that collectively at least in the United States of America GPE . Collectively driver 100 1 million mi Before Having a fatality. That's a lot of miles. So humans are also pretty good. And the thing humans are good at. Which is hand I call it exception handling. We all know how to drive. If you are all fully autonomous, would be deployed already but we're driving amongst human and you have to deal with so many little scenarios. There are so many things that you've been learning about driving since birth. And codifying that using AI sensors and and computers is turning out to be a lot harder. Last but not least, it's a safety critical system. None of us. Deploy. Unless we have clothes loop evidence that were safe. So what is the AI I need to learn how to At this point what are the challenges left to solve it needs to know how to deal with unexpected things. I say as they happen. And is that possible? That it can I AI learn that? Of course it's possible. I mean I'm one of I'm an optimist when it comes to technology. I started in wireless so you have to think from Switchboards all the way.
Can I AI Lona? Of course it's possible. I mean I'm one of I'm an optimist when it comes to technology. I started in wireless so you have to think from Switchboards all the way to today DATE . Quite a journey. I'm fascinated by flying. Airplanes. The right brothers if they were trying to solve what is being solved in aviation Day. They wouldn't have tried. We we just let let it marinate. Let it take its time. The algorithms will get better. Commute gets better all the time. Senses get better all the time. It will happen. What about security challenge We've reported on how Tesla ORG 's have been hack So you have to design security in your into your products from the beginning and for us we look at all the scenarios Of what could happen from the security standpoint. Now, these these robots or these robot taxes are also recording all the time. So, they sort of know what's happening inside of them and around them so that gives us a little bit of a of an edge and then you look at access This is something you just have to pay attention to understand what's going on in that world and make sure that you design What does Aisha Evans PERSON see as the future of Zuke ORG 's do you see a global However you get your new Hey Facebook And we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need. How many rights have you taken? Actually, it's such fair, alright? I take a lot of riots. Both in our Lthree testing fleet. As well as in the ground up robot taxi. So, when you take a ride, what's your report like generally afterwards? Well, okay. So, Two CARDINAL different things on the test fit because and this is a big difference between us and our fellow travelers. I mean our L three CARDINAL fleets the Toyota ORG Highlanders are now outfitted with the same center architecture placement and compute. There are purely engineering past vehicles. So when I it's called drive review. When I take a ride it With understanding what progress we're making, what issues were still having, I'm fascinated by the scenarios we can't handle. How fast was tele ops able to step in and so on and so forth. So then I have a Reports and the app and this and that. Robot taxi it's more like I'm excited. I'm usually giggly. And then after 5 minutes TIME I'm bored. And I'm on my device. Which is what you How is it navigating supply chain challenges A chip crisis impacted you? Yes, it has. It's impacted everybody. Look, first ORDINAL of all, some things are just more expensive than they should be Second ORDINAL but you accept that it's the same for everybody. You have to get a lot more crisp around your needs because lead times are longer. And that's really when it pays off to have had a good relationship with your suppliers and treated them as partners so you can talk about your problem statements and arrive the solutions but it hasn't like slowed us down. It's just been an extra vector Man.
And treated them as partners so you can talk about your problem statements and arrive the solutions but it hasn't like slowed us down. It's just been an extra vector Manage ORG . Uber and Lyft seem like a would be obvious partner Could you talk to them We in this industry there are no secrets And we're all friends. We all talk to each other. At some level or another. So, yes, we all have talk to each other. Would you imagine would be your first ORDINAL customers? Well, first ORDINAL of all, Las Vegas GPE , we've been public that that's our our first ORDINAL lounge. I call it sort of affectionately a one CARDINAL street dance urban environment. How's that? With a lot of demand. And then we really think that in starting at least at the beginning, Cities that have a very dance or urban sort of landscape where people are going to work, people are going to museums, people are going to restaurants, they don't wanna worry about parking, we think that would be the first ORDINAL customer. So, commercialization is on the horizon in Las Vegas GPE and also San That GPE would be next. How do you stay motivated on that Commercialization. Given that there are still, as you say, these hard problems to solve. Cuz every day literally Either Something happens in terms of progress And it's really important to not just look at the ultimate success but I call it like kind of along the way. The little celebration. I mean, even when I do drive with you, yes, I have a long list or you know, oh what about this? What about But the vehicle will do something new or something awesome and you're like, oh my gosh, you go awesome. So, there are so many things that happen on a daily DATE basis, weekly DATE basis that you see advancement. I I talk it's Climbing, right? You get to a certain element or a certain place. You appreciate the journey. You turn around, you look down, you see what you've done, then you're like, alright, let's go for the next pic. So, as you put points on the board, Aisha Evans PERSON see as the future of Do you see a global Or do you see something more modest I see I want and I hope to lay the foundation for a global mobility giant. We talked about human being need transportation It opens up access to Mobility PERSON , it opens up access to knowledge. It opens up access to inclusion, Not to mention safety the environment and frankly humans were just too valuable to spend also 400 1 billion hours QUANTITY worldwide driving and we think that this is at the center of that puzzle So that is the goal Alright PRODUCT . So, we're gonna do, this is a little rapid fire. Yes. So, now, so just quick answers. Stand for. Sort of species that is solar powered and self moving in the ocean. Interesting GPE . Piece of advice for your 20s. Take a chill pill it'll be okay What about your 40s Enjoy the journey you've made it Are you under restaurant at some point is that I confused the love of cooking and running a restaurant What's your favorite thing to cook Champion which is a goodies dish. Biggest guilty pleasure. Trashy books. Box. Fellow travelers what's your favorite travel destination Hi. Which island. Hawaii GPE . Last TV show you've been I'm in the middle of it at Bridgeton GPE . What's your view on work life integ I don't use the word balance Work life choices setting expectations on all sides. They are everything. They are the beginning and the end. Our driver Is always right around the corner or 10 years DATE away give A lot of people ask me when can I tell my kids they can't have a they shouldn't get a driver's license and I think it's gonna be probably my kid's kids. Arguments for and against going public Against definitely focus Any pressure is something I understand and know and this is a long time
Scoring public. Against definitely focus The quarterly DATE pressure is something I understand and know and this is a long term journey. So, focus is important. It seems to be everybody's dream in this valley. Is it yours No. No. My my my dream is to to get this this robot taxi out there and to see it deliver the promise that I know it well. Is Duke ORG 's gonna be on public roads this year DATE ? I don't know. We'll have to see What about 10 years DATE ? What is success look like for zooks in 10 years DATE ? Several cities There I say hey I'm gonna zooks my way over there Evans PERSON . Thank you so much for joining us. Great to have you. My pleasure. I appreciate you coming over. The world like bloomberg PERSON . In the coming months DATE do you see that coming Taiwan GPE and China GPE . Not just cop and wrong with unmatched reaching resources. The moment news breaks 24 hours TIME a day. Ken Griffin PERSON is moving both Citadel and Citadel security is to Miami GPE the scoop was broken by Bloomberg PERSON 's Amanda Companies ORG now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to Software that is reading it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? Sustainability, security, and hunger. In this episode of Bloomberg Green PERSON , we're focusing on food and how we can reduce its carbon footprint and get it to the people who need it. We'll explore the near shoring of food production. Supply chain. We're locating our farms.
It's carbon footprint and get it to the people who need it. We'll explore the near shoring of food production. Supply chain. We are locating our farms close to the cities that we are actually serving. The consequences of a lack of food for the poorest in society. Right now, at this very moment, we do not have a food availability issue in the world. We are grappling with a food accessibility and a price-related issue. Diversify and we need to find alternative ways to to farming From Bloomberg PERSON 's world had quarters in New York GPE I'm Kaylee Lyons PERSON and this is Bloomberg Green PERSON . According to the United Nations ORG around the 10th ORDINAL of the world goes hungry that's about seven In 70 1 million QUANTITY people The number is frozen. Up about six% ORG last year DATE . Is the worst hit continent with more than 20% PERCENT of the population facing hunger. The coronavirus pandemic and the war in Ukraine GPE are exacerbating the issues and putting at risk of goal to solve the problem by the end of the decade DATE . Another key risk for Poor countries is extreme heat and what that does to crops and last week's DATE episode we covered what extreme weather can do to the world and people and in Episode GPE . We're going to focus on food. Farming and solutions to solve the lack of availability and the Impact of producing nutritious meals We're going to hear from the United Nations ORG about some of the key To do with food and agriculture and then explore some solutions for producing food near where people live including vertical farming but Let's explore the impact of near shoring food production President Joe Biden PERSON has signed a sweeping new tax in climate plan into law the White House ORG describes it as a largest ever single investment to address climate change. Day offers further proof at the Soul America's ORG Vibrant Future of America ORG is bright and the promise of America GPE is real and just beginning. This law will mean investment in new companies joining the fight against global warming summit the forefront are those involved in near shoring food production But what does that actually mean Well, it's the opposite of globalization. Instead of taking advantage of cheaper labor and prices another countries nearshore in produces goods near where they are consumed. When it comes to dinner, food eaten in the US GPE , travels between 1525 100 DATE mi from farm to plate is that a bad thing? Will it is if we care about food security or emissions? The last 10 years DATE saw more emissions than ever more than a third CARDINAL came from food production and food transportation is worse than we thought. A recent study found that it produces up to seven and a half DATE times more greenhouse gases than previously estimated. Food miles are likely responsible for about six% NORP of the world's emissions that's three 1 billion tons QUANTITY of COtwo ORG equivalent every year. Aren't equal. The 12 CARDINAL . Five% of the world's population in richer countries account for 46% PERCENT of the emissions from food miles Third ORDINAL of those emissions are generated by the international trade of fruit and vegetables the highest for any group. The emissions from transporting fruit and veggies nearly double what's produced in growing now. Sticking to your five a day DATE maybe healthy for you but if it comes from thousands of miles QUANTITY away the impact on the planet can be huge take a head of lettuce grown in California GPE and shipped across the country to washington GPE dc that uses up about Six CARDINAL times as much energy for transportation as it actually provides to the person who eats it and the problem is only likely to get worse. Food production is helping to warm the planet and that warmer planet isn't turn affecting food production Scorching weather and drought are decimating farm mules from Waterloo to Wichita GPE from Bangalore to Bordeaux. Food security also takes a hit as it becomes harder to produce and distribute spontaneously when supplies get disrupted and say have been by the war in Ukraine GPE or lockdowns in China GPE . And climb the disruptions.
This is never green. Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before. We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life Emily isn't becoming more digital. Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . The semi conductor industry overall Estimator are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. No one covers the world like bloomberg PERSON . Seven% in the coming months DATE . Do you see that coming? The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Welcome back to Bloomberg Green PERSON I'm Kaylee Lyne PERSON from Bloomberg ORG 's World headquarters in New York GPE After an era of abundance fears abound that the world is entering into a fresh era of scarcity From climate change to pandemic disruptions to supply chains to war in Ukraine GPE and declabilization have impacted Security globally In the world's developing countries. Now, let's bring in Beth Beckel PERSON deputy director general of the food and agriculture organization of ORG the United Nations ORG . Beth PERSON , Are global food supply and where climate ranks in that? How great a threat is it? Yeah so you are are right on message and the fact that we are very much dealing today DATE with a climate crisis that agriculture and food production is right at the center of and this comes as we all know Setting right on top of the COVID-19 pandemic. We also have the war in Ukraine GPE which is disrupting markets creating other challenges for farmers all over the world in terms of supply availability of both commodities and fertilizers and other important inputs so when we think about the importance of needing to address climate driven challenges and thinking About the future of how agriculture can become more sustainable. This is the moment I think before us to really make sure we we commit to that. Well, as you say, this is a problem. All around the world but what regions specifically are at the greatest risk Yeah so when we really focus on climate I mean I think we have to be honest that really it's every part of the world that is seeing climate driven in packs we we see those in the United States GPE we see them in Europe LOC whether it's it's increased temperatures new floods that are emerging continue Rivers are drying up but when we look at the places on this planet where people are food insecure they're hungry they're being driven to really high rates of of starvation and and even malnutrition when we really think about those places and also have conflicts that have emerged On the global south Latin America Central America LOC the dry corridor is we call it another parts of of Asia LOC as well Crisis ORG is here.
Latin America Central America ORG the dry corridors we call it another parts of of Asia LOC as well. The climate crisis is here in every part of the world We need some kind of call to action if we're going to solve that problem or at least mitigate it, right? So, what Tangible that can be done to protect the global food supplier at least adapt the way we think about food the way we eat what we're eating in order to be able to deal with that changing climate Yeah, so this is where for agriculture especially, I think this is the moment where all of us need to do agriculture is part of the solution. As opposed to being a part of a problem. And this is where a real commitment to Agricultural production which means doing more feeding more people but doing it with fewer resources, fewer inputs, and with less of an impact on the planet. So, doing more with less and this is where I think in this very moment, the opportunity for science, for innovation, for Productivity ORG changes to all of agriculture is most important. And finally Just talk about affordability because as we've seen born out in so many different sectors of the economy in the last year DATE we understand that constraint supply leads to higher prices how much when we think about food shortages is just that actual shortage not having enough to feed people and how much of it is What is available is more expensive and therefore affordability becomes a problem and access is an Right now, at this very moment, we do not have a food availability issue in the world. We are grappling with a food accessibility and a price-related issue but hopefully, as we continue to see more movement and perhaps getting grain moved out of the black sea region We are seeing record prices start to ease a bit we are having good prop production forecast in a number of the important regions of the world and so the very I think important message for all of us is to really make sure that we keep markets open that we don't find ourselves in a position where countries are Unnecessary GPE trade restrictions or other kinds of bands on on market openings. This will be another really important. I think aspect of navigating these next several months DATE . Deputy director general of the food and agriculture organization of ORG the United Nations ORG thank you so much. And coming up we've seen the problem we've looked at the consequences so what solutions are out there we'll take a look at some innovative methods which are prime to change how we produce food and how far away we produce it that's up This is Bloomberg Green PERSON
In a seven 1 trillion dollars MONEY industry there's a lot of ground to cover Every Friday with 30 minutes TIME dedicated to fix income I'm Jonathan Farrow PERSON this is Welcome back to Bloomberg Green PERSON . I'm Cade the Glines from Bloomberg PERSON 's World Headquarters in New York GPE . Agriculture remains one CARDINAL of the biggest challenges in the fight against climate change with food systems responsible for as much as 30% PERCENT of global greenhouse gas emissions as well as contributing to a lots of biodiversity. At the same time, extreme weather events linked to rising temperatures undermine farming and seafood production creating a vicious cycle. What solution may be swapping breath for height and farming into the sky. Vertical farming methods may be able to deliver high Consumers with less waste and without concerns over fickle weather. We shoved like maybe I wanna What is very important about indoor farming is that this opportunity to really understand the possibilities that we have in the years DATE to come. We'll give you a walk. Warehouse scale indoor farms. Completely independent of weather and seasonality What we're really doing is not just reinventing farming we're actually reinventing the entire supply chain we're locating our farms close to the cities that we are actually serving Harvest WORK_OF_ART versus weeks DATE or months DATE of time nutritional agricultural system. Jose Andres PERSON has been an investor and an adviser and a friend of Valerie PERSON for quite some time. Situation inside Korean NORP right now. To solve many of the problems that we face in the simple thing of losing foot. Hey bro completely pesticide free so there's no herbicide no fungicides no insecticides for over 100 times more productive than a square foot of traditional farmland and we use only a tiny fraction of water compared to traditional agriculture. What makes that all possible is a combination of robotics and automation that we design and develop on our own. As well as the battery operating system. It allows us to control the very micro level The conditions in the attributes around our crops and to adjust variables in real time and that kind of control allows you to drive flavors and attributes of props that we've never even experienced yet before. It Valerie PERSON we focused on leafy greens and herbs as a start and we have the technology we have the retail partnership we have the know how to begin to move into new crops Incredible representation of what we can do empower it. It's a fruit that's extraordinarily seasonal. One CARDINAL of the most pesticide ridden fruits. These are issues that we face. So we can focus on variety and flavor and texture We can strawberry is quiet there's some there's many is unbelievable It's a great strawberry Hey My restaurants totally. Bring in the right technology.
It's a great strawberry. Hey Facebook Of course being my restaurants suddenly. Being the right technology the smart technology to be able to Foster ORG , quicker, better, smarter, and less use of water Will be even more calorie dance props. If Valerie PERSON we've been growing hundreds and hundreds CARDINAL of variety of crops we're thinking about agriculture for the generations to come give in the climate crisis that we're dealing with today More meganisms to produce for the More chances we have to solve many of the footage that we Not all of us have the luxury to go to a farmer's market. We can bring that high quality, local, fresh produce to consumers everywhere in all types of retailers as well. So, what you see here is very much the future in more ways than one. For more let's bring in Erez Galonska PERSON the CEO of one CARDINAL of Europe LOC 's largest vertical farming facilities in farm Vertical ORG farming as a whole and what problem it is you're trying to solve. First ORDINAL of all, we are in farm building a global farming network, Bye AI PERSON to provide premium produce if you like in affordable prices our vision is to help cities become more self sufficient in their food production I can tell you In from we escort ourselves one of the biggest questions and trying to overcome one of the biggest challenge humanity faces how to feed clothes to 10 1 billion MONEY people by 2050 DATE and we know that we have three CARDINAL main Threats NORP very big ones eh the world is facing today DATE climate change epidemics and of course wars and dish shocks ehm represent major wake up call ehm to the fragility of our food systems and the need eh to make them more resilient and more reliable to feed people at scale and Exactly what we are doing within fun. So obviously there is a major challenge that you are trying to help address but that doesn't mean that you don't face challenges yourself what do you think the biggest Is facing vertical farming as it attempts to scale and meet the world's needs. I will echo again the biggest ones is execution With the climate change in the pandemic supply chain structure and logistical state going up inflation And Very big problems that eh they could they we know that these shocks install time and we are very much focusing on execution delivery of products to our consumers and to our clients and I can tell you that we already signed hundreds of millions CARDINAL of contracts with leading retailers globally so it's About execution and delivery on time and it's extremely challenging during during this Puberland GPE times. Well, clearly in farmers growing very quickly. What scale do you think you'll able be able to Eventually. We tend to have growing centers in 20 CARDINAL countries with millions CARDINAL of growing Square meter Active in the field growing the entire foot and vegetable basket I can say Pipe supply chain destruction and the ongoing war in Ukraine GPE . We continue to execute. We just tell launch a new facilities in 2022 DATE . Increasing our footprint by 20 1000 square meter QUANTITY which is 40% PERCENT up then half one of last year DATE . And just widening the lens beyond in farm when we think about vertical farming as a What role do you see it playing eventually in the agricultural mix? Is this going to supplant traditional agriculture? 1 day DATE in the future. In order to mitigate risk and overcome those negative challenges we need to diversify and we need to find alternative ways to to farming and of course vertical farming control environment that we portraits one of those solution if you look on the total addressable market the food and vegetable market will be
And of course the birthday girl farming control environment that we qualrates one of those solution if you look on the total addressable market the food and vegetable market we are talking about Three 1 trillion QUANTITY soon to become six 1 trillion QUANTITY food and vegetable market and a vertical farming market share from this is going to be in around 30 1 billion by 2030 DATE and I can say that this trend will continue as food and food security become even more important Times ORG of crisis. The CEO of In Farm thank you so much. Okay so we've looked at how we might form better on land but how about our oceans sus Fish farmers say wearing salmon far away from their wild cousins solves the problem of waste parasites and disease so let's take a look at how sus Blue farms in a close loop ecosystem to minimize their environmental impact Any salmon that's produced online is better than a salmon that's producing an open net pen. The attitudes are changing per capita consumption is increasing of seafood and aquaculture needs to respond. My name is Kirk Havercroft PERSON and I'm CEO for Sustainable Blue ORG which is a land based salmon farm situated on the Bay of Fundy ORG . Currently in North America LOC we consume somewhere in the region of half CARDINAL a one 1 million metric tons QUANTITY of Atlantic LOC salmon every year DATE but only about 140 1000 metric tons CARDINAL of that is actually produced in North America LOC and the reason for that is that salmon farming in the ocean can only take Certain latitudes because salmon need a fixed ranging water temperature within which they can survive. There's what we call open the forms of aquaculture and this is where we see cages or pens that are suspended in the open ocean If there are any diseases or anything like that. There's no way of protecting your fish from that. And that's a critical piece of the problem that we're trying to solve. So Rasfani NORP has a tremendous opportunity to fill that domestic production gap of the acronym rasp stands for recirculating aquaculture system the water circulates between the fish tank and the filtration system which keeps that water clean and returns it back To the fish and that keeps the fish healthy and protect the fish from whatever those threats might be out in the ocean In traditional Rass Farms ORG as the fish are feeding and producing that waste. The waste is filtered out and then finally discharged back to the ocean. And that was a particular component that we wanted to resolve. Sustainable blue has developed its own filtration system which is not discharge any waste back to the ocean at all. The advantage that that gives us is we can detach fully from being located by the ocean and produce fish where the fish are consumed rather than producing fish where the farm has to be located We actually have both fresh water facilities and salt water facilities here. We have to do that because so that their biology needs fresh water at the start and salt water at the end. So we're not about to change that. We have to replicate what happens in the wild. Whilst I think what we all felt was a small business when we started over the past 10 years DATE what we've seen is the almost infinite potential. That this kind of technology brings. It has given sustainable blue the position of being to the best of our knowledge at least the only oh discharge salt water aquaculture facility anywhere else in the world. So, from the problems of food scarcity, supply chains, and environmental concerns to solutions like vertical farming. This week DATE Explored the impact of agriculture on society and the environment.
Vertical ORG farming. Would be impacted agriculture on society and the environment. Open up for this edition. Instagram and Twitter PRODUCT . Climate. World headquarters in New York GPE . And that is when we're green. We don't have enough women founder CEOs who are getting funding so basically less than two% of VC PERSON funds go to women less than one% ORG go to women of color and so in this Innovation GPE space. I said to myself, what's the best way to use To move things for women and that's when I started to say, okay, I actually need to move some money into the venture capital space and I wanna do it smartly. I mean, the first ORDINAL goal is to make money. I'm not putting my money out as a social impact. I'm putting it out to make money but I wanted to go behind funds like aspect ventures that's run by Teresa Gow LOC and Jennifer Ponstat PERSON , who are looking at these And they have a thesis around my gosh. There are so many opportunities there. If we go towards funding some of these women businesses. Some LPs have said to me, all we care about is returns. Some of the best investors may not be the best people but they have the Returns. What do you have to say to those people? I have to say you're investing in what you know and so you need to look at what trends are coming in the nation and how you're gonna address them. Women are 85% PERCENT of consumer dollars spent. Women control 70% PERCENT of financial In the house. So, if you're not investing in products that go towards females or women lead company, you're missing an opportunity cuz you just don't see it. Markets are preparing to close but the day is not over yet. 45% PERCENT of volatility right now. You need top analyst to bring you exclusive global insight into cross asset markets. Bitcoin ain't buying along today DATE it's gonna be short term Hi I'm Shanali Basic PERSON and you're watching the Nets Big Risk in a year DATE that was marked by Russia GPE 's warn Ukraine GPE soaring inflation around the world and torn supply chains market sea risks everywhere but Three CARDINAL titans of finance are looking further out for the next risks. I think that the promise of the American NORP dream has to be defined Hey almost know this voice about a future pandemic and almost no momenta The globalization you're gonna see Dates look internally and make sure that they have the ability To support themselves. With Abby Joseph Cohen PERSON who's concerned that future generations in the US GPE will not achieve the same financial stability as their parents unless public and private investment rises and Americans NORP are protected by the right agencies to ensure economic growth and to defend the labor force. These are the next big risks. There are always issues and for me there are three CARDINAL in particular that I'm focused on intermediate and longer term one has to do with our population for more than a century DATE one of the pieces of the secret sauce for the United States GPE growth has been the fact We've had strong population growth and strong gains in labor force and I'm concerned about that right now The second ORDINAL area that I look at has to do with investment. For more than 150 years DATE , the United States GPE has been one of the global leaders in long term investment both government investment and infrastructure and also corporate investment in private capital. And what we're seeing is Will you fall in short over the last
Government investment in infrastructure and also corporate investment in private capital And what we're seeing is that we have fallen short over the last decade DATE or two CARDINAL and we need to be looking at that as well and the third ORDINAL piece that I'm increasingly concerned about has to do with the role of government in the economy and let me be very careful in how I express this I believe in markets. I believe that capitalism has worked well in the United States GPE but not unfettered capitalism. We have benefited from good regulation. Always the best but when we try to protect As a nation we tend to do much better we look at some areas in which that kind of solid appropriate regulation may now be coming under some risk and I think that would actually damage long term economic growth of the United States GPE what about Of the United States GPE is creating a more complicated future for labor in the country. Reasons the US GPE economy has outperformed the economy of other develop nations for the last 30 or 40 years DATE has been that we've had faster way before growth you know it's a very simple Medic PERSON equation Workers, more GDP. Quite that simple but it boils down to that and in the United States GPE , we have been very dependent on immigration. By the way, that's not new. This has been a nation of immigrants since it's founding. If we're not viewed as welcoming to talent from around the world, we'll have a problem going Long term growth. When we look at the information from individual companies and industries, we see that there is a labor shortage at all ends. We all know for example that right now, one of the reasons behind the rise in service inflation has to do with an inadequate number of workers At airports. In restaurants and so on The area that I spend a lot of my time looking at is the other end as well do we have enough new scientist do we have enough new engineers do we have enough new doctors and the answer is no we don't keep in mind you have to also create a pipeline Right? The students who are now K through 12 CARDINAL are the future pipeline of scientist and engineers and doctors and we're not doing a very good job within In terms of their skills. Is this all kind of boil down to Erosion of the promise of the American NORP dream. I think that the promise of the American NORP dream has to be defined and that is Every generation doing better than the previous generation. Do they have the To do better than their parents did and what we have seen over the last 30 years DATE or so maybe 40 DATE is that median household income in the United States GPE adjusted for inflation has not risen but that is a problem I think it creates a sense of political discord it creates a sense Unease among people in the United States GPE and it is worrisome. Because we have to think about how do we get out of this? Well, one CARDINAL way we get out of it To In on the industry that we think can create jobs that can create good paying jobs and and to protect our workers in that way the long term problem is staying ahead of the curve making sure that the industries that you're supporting Eating PERSON jobs and those jobs are paying well enough so that individuals and households feel that they are moving forward. There about how investment in American NORP infrastructure was one of the things that you were worried about. Is this the biggest area of investment that you are concerned about? Many economists, myself included, believe that the so-called golden era of the 1950 DATE 's, 1960 DATE 's, economy of the United States GPE was linked to our willingness to Heavily in the future and it wasn't just
Golden era of the 1950 DATE 's, 1960 DATE 's, economy of the United States GPE , was linked to our willingness to invest heavily in the future and it wasn't just the government, it was also corporations willing to do that. So as a percentage of GDP We were dramatically above every other nation. We were number one in that category for century DATE . We no longer are part of that is because we are under performing our own previous commitment to this area but also other nations have figured it out. In the 21st century DATE , the winning economies, the winning strategies for economic growth, and therefore Enhancing the well being of your people will depend upon whether you're investing. The reality is wages have not risen pace with inflation. And so if you think about the ability for the average American NORP to earn a living. How does that kind of play into this longer term concern you have about the next 10 years DATE not being as good as the last 10 CARDINAL especially Companies are not going to be able to invest in the way that they used to under a higher interest rate regime. The the strength of economic growth Long-term prosperity. I'm not talking about stock market prosperity. I'm talking about the prosperity of the people in the nation is very much tied to the health of the middle class Obviously to weather the wage in the incoming increases for those families are adequate and that is something that has been a problem now for 40 years DATE in the United States GPE where the median household income hasn't kept up So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the curtains and now we see much more clearly where these problems are and where the issues are. I for one and happy to see that wages are now rising. I'm happy to see That workers have more flexibility and how they wanna conduct themselves and so on. I think that's that's a good start. It's not the end. Solution. We need to recognize that a 40 year DATE problem is not gonna be corrected. In 4 months DATE . It's Take longer. Don't Place. Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Find people. Analyze Marcus You can enter phrases Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Microsoft ORG Sacha Nadela IBM's ORG Arvin Krishna PERSON my crime technology Sanjay Majotra PERSON and that's just the start How did the chief executives of adobe deloy gap VM wear and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Technology it gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted H one CARDINAL B visas for the US GPE . And it's a safe
Indians NORP make up about three CARDINAL fourths of the immigrants receiving coveted H one CARDINAL B visas for the US GPE . And it's a safe bat that some of them will eventually find their way to the sea sweep. When you look over the next 5 to 10 years DATE over a little bit of a longer time horizon and you think about what's happening in the economy and markets in society more largely Keeps PRODUCT you up at night TIME . One CARDINAL thing that has, you know, I seen particularly important to me is how we handle future pandemic. I, you know, we we shared with COVID that we were not ready. For global pandemic and I think we are still not ready for the next one. The really worrying cases, is that we have a repeat of what happened with COVID, where we are not prepared at all beforehand, by ends up spreading too much of the world, but with a way higher fatality rate, and ends up A lot of people. The economy grinds to halt amid the chaos and lockdowns. You know, it's there for more extreme version of what we saw during COVID. Is part of your worry here that the next pandemic would be worse than what we saw in COVID and a worry that underpins that. The systems we have are not prepared for it. I think it was We have not started putting any of those processes in place that we should have had last time if you know we got a And there was a future pandemic that was substantially more fatal. You could imagine the same thing playing out but with a lot more devastation. Problem is that they're warrant that many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand there's almost no discourse about a future pandemic and almost no momentum we don't seem to learn really the core lesson Which was that we were not prepared and that we need to be better prepared. Do you think this is going to put on an economic system in the future? I think that you played out pretty poorly this time when all of a sudden done and I think at the very least you could see a repeat of that where not only did we have massive supply kit problems that were now seeing in retrospect we had massive monetary supply increased trying mask over Some of the problems Would have been it probably a devastating economic hit otherwise as COVID winds down and are I economic I I monetary counter measures wind down it becomes clear we never really averted economic impact from It's had massive negative impact, right? You can look at runaway inflation, you can look at rising interest rates, a slumping economy, slumping markets, and and and that was without, you know, nearly just as they're put a bit of future one that that does much more damage and we might not be able to get back to what Obviously different Were impacted differently both within the US GPE and across the world. So, do you worry about the compounding effect when it comes to, you know, the social strata Because of the global nature of pandemics If there is an outbreak in one CARDINAL country that is going to affect every country And and and so not only juicy disproportionate dust in less while off countries but that also makes it really hard for the world to stop this spread of pandemics and that means that if there are countries Trillions of dollars MONEY as a world. Trying to contend To fall out. From COVID that is a really huge expense and we're still locked down with it. It's a little bit sobering to see the scale of impact of that new combined with the game with just like Even solving the problem and that's with the workforce that is able to mostly go back to work in person if you have a more deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted for the activity
More deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted productivity declines that sort of talespin with the tens of trillions of dollars incinerated in the first ORDINAL place The strain on political systems. You saw kind of the masking issue and the lockdowns becoming a really big contention point politically in many governments across the US GPE and the world. How do you expect that to create a further strain on the system? Politically. I'm on And on many countries. You know a pandemic from getting out of control in the first ORDINAL place. You know cut it off way closer to the source. That means instead of arguing about masks you know we should have been focusing on how can we get in place You know good ventilation in indoor buildings So that there is massively less spread of pandemics through them that would have been a much much healthier You know focus process as a society. Our ways that you personally are kind of incorporating this into your own work. I know you've been rising more and more both as a philanthropist and as a political donor, how are you thinking about this risk in terms of how you work ahead? This isn't a one CARDINAL party against another party thing. I in the way that some debates over some specific Techniques ORG ended up being I have been spending a fair bit of effort and and and time and in capital on trying to advance you know pandemic prevention I I you know legislation and in policy a lot of the discourse around you know COVID and pandemics in general has you know I I as you serve you know reference Focused on things like masks by the time that's the debate we've already failed at the much more important goal which is avoiding ending up there in the first ORDINAL place by having countermeasures ready beforehand by having early detection systems by Good ventilation in buildings the goals to get to a place where outbreaks don't become pandemics and the first ORDINAL place and where we don't have to shut down you know the economy where people don't have to die where we don't have to make trade offs and hopefully we can you know I think spend you know tens of billions of dollars MONEY Today DATE to save tens of trillions of dollars MONEY later on. There is a possibility I think this leads to revolution in populations that do not have control over there Food and energy. People ask me all the time what is the key to being a really good ambassador I tell them it's a surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade Transport that see at some point. Era of global commerce. Mission I'm from shipping. Sent me not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? So Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? Front of us right now is is I think de globalization you're gonna see in a nation states look internally and make sure that they have.
Globalization you're gonna see Nation states look internally and make sure that they have the ability Support themselves. How much of this is a function of the war in Ukraine GPE and how much of this deglogalization phenomenon started before that? Well, I think it did start before it. All you have to do is look at Brexit PERSON . I mean, the idea for Brexit PERSON started, I think it's now 7 or 8 years ago DATE . It didn't Is let's just take an An exemplary Figuring this Germany GPE So Germany GPE strategy up to this point was to outsource their To the United States GPE to outsource their financial management to the EU ORG . They outsource their energy supply to Russia GPE And they also they're in market to China GPE . This was the complete globalization of an economy and you can see at this point, I think they're in extreme trouble. So, if you think that deglobalization is the next big risk, what's at stake from countries detaching themselves from each other? What really is the problem with For a few decades DATE we were able to outsource to the cheapest labor markets we were able to rely on each other for goods that that really throughout history and I I do think part of this is going back and reading history most countries would not outsource items that were very important to their well being food being one And I think energy being one that's showing up is to be extremely important What's gonna happen now is I think each society is gonna have to think about did I did i outsource something that That I'm not comfortable with. How is this even possible to fully become the globalized when so many nations rely on others? It's not that every nation is rich with oil or rich with nickel. With food resources events. For those of us in the United States GPE , we have a spectacular Country filled with the resources. We need Germany GPE has gotten itself in a position. Nuclear We're seeing Elements of deglobalization and it's cost To ordinary people. What are the costs? How else are you seeing a play out? Throughout history, food is always been a key and if you look at what's happening In the Russia GPE Ukraine GPE war I think there's more going on there in terms of supply supply supply chains harfied by the war and the invasion but I think the The motivations and the and the rational and what's happening behind it are gonna highlight to people can I provide the basics each country will move to protect their own citizens and as a result they might deglobilize ahead of you there are populations all over the world that we're not aware of but they wanna eat and they Be heated in the winter DATE . Cheap electricity. And all these things are going through the roof and to the extent We're feeling the political pain in the US GPE and I I believe we'll solve this problem. It it might take a couple of years DATE but it'll work its way out. Not everybody has that choice. Much of the rest of the world has depended on flows of of those Food goods. I mean, we're talking about Part of Africa LOC that is totally reliant on the Ukrainian NORP weed fields and Russia GPE was a gigantic exporter of wheat this is the basic food ingredients that keeps people from From from having instruction we saw it again in Sri Lanka GPE over the weekend DATE you're nine CARDINAL meals away from having a very unhappy citizenship that's willing to to take extraordinary action To get their family safe. There are, you know, seven 1 billion people in the world. I'd say a one 1 billion CARDINAL of them, let's say roughly or in Western Europe LOC and the US GPE . And we've set in course policies Very much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that six 1 billion QUANTITY people Two 1 billion MONEY it subsharing Africa LOC During Asia LOC are still trying to reach middle class We raise their
Six 1 billion CARDINAL people And it subsharing Africa Asia LOC are still trying to reach middle class And if we raise their energy costs dramatically I don't think they're gonna be you know they're not gonna be happy about that and I I think the Arab Spring DATE fundamentally started over food prices and their basic instinct in need is to feed heat cloth and take care of their family. So Are the forces that are reversing decades DATE of globalization. Well, it might be just the safety of these supply chains and possibly the actions by Russia GPE are a highlight to that but again, go back to Brexit PERSON decision By the UK GPE people In a vote to take back some of there also they had outsourced their labor force to Europe LOC and they had started to make a decision to pull it back for whatever reasons they didn't like outsourcing again outsourcing your financial management To the EU ORG and the ECB ORG . You mentioned the outsourcing of financial assets. On one CARDINAL hand I'm wondering what impact do the sanctions have. Some of our policy moves here are gonna have very long term ramifications in this environment. We've frozen the bank reserves of Russian NORP bank And if you don't think that every single Maybe not every single but there's substantial number Nance Ministers PERSON around the world have to rethink Where are there as a secure? I've had many people ask me What do I do if my assets in China GPE What do I do in my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar disagreement or conflict are those assets subject to immediate abandonment? These are questions everybody's gonna ask whether they talk about them a lot or not. They're gonna be asked I'm not saying we'll go to 100% PERCENT investment in your own country but boy the risk Premium GPE has significantly gone up. I mean, is this just a giant politicalization of assets around the world? As you see it, given that now, governments are getting involved in a much more Way in terms of the resources that they own oversee and trade. Companies. We've had to abandon assets immediately because of a political because of a conflict. So now you have to anticipate where in the world might we not like the activities of a future You can come up with a long list of where you might be uncomfortable and you have to truly change your your wrist profile there. So, we're in the middle of seeing a very effective use. The weaponization of resources now not everybody can weaponize the resources because they don't have They don't have enough resources. So, to the extent that this is the biggest risk you see on the horizon over the the medium to long term. What about it? Really keeps you up at night TIME . There's a possibility I think this leads to revolution in populations that do not have control over there. Energy and in a world that we live in like it or not The the change in the world toward cheap energy Asian NORP cars oil and gas is used for clothing. It's used for significant amount of products. And again, food is food and I get concerned as to what can happen in these these If if oil and gas does get to be $ 200 MONEY a barrel And if The supply, the actual food supply gets disintermediated. I think you could have ramifications. We haven't, we haven't seen. Now, I'm not I'm I'm pretty bullish on the world so I think people figure these things out but I I think the quicker The world focuses on it and and admits that they have to supply and be independent of global trade in its best way they can the better for their populations. David Weston PERSON . From businesses most influential and instrumental. This is a level of.
Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio. No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE . Will not just cut and run. Before hours TIME a day. Merge. Crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs cure. For something Universally important to human life asleep mystery surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding It's easy to memorize things that makes you smart. It can spit back a lot of back. But if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what your brain figures out while you're sleeping. Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks for having me. Just found out we actually lived in the same dorm in college. Just a few years DATE apart So it's been almost a year since you took over From Jeff PERSON CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to Unionizing Amazon ORG Warehouse your first ORDINAL Bloomberg Conference. Thank you. I wanna start with a quick report card. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Later he passed the rains to andy jassy his long time top lieutenant the architect of one CARDINAL of the company's biggest profit Amazon ORG web services Has stayed on its executive chair leaving Jassie to navigate a critical inflection point in Amazon ORG 's history. Does the company manage market turmoil rising inflation and regulatory scrutiny and a push by some warehouse workers to unionize all while keeping customers coming back Me PERSON on this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Review ORG of Amazon ORG 's performance And we've got time later to to really dig in but quickly how would you grade Amazon ORG 's performance over the last year DATE Customers. Myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've Are good. You know, and I think if you look at during the pandemic which really has extended till the early part of this year DATE , you know, so much of the PPE ORG and food and essential items and people equipping their home offices were bought from Amazon ORG and and you know, to scale the way we needed to. Remember, in 2000 DATE Hey Facebook
People equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39% PERCENT your over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unprecedented Happen before but it was really hard to do that and we had to take the really big footprint of fulfillment center footprint. We built the first 25 years DATE of Amazon ORG and double it in 24 months DATE . We built out that transportation network in just a couple years DATE . In a week DATE , nearly double the size of our workforce during that time and I think you saw it in other This is, you know, AWS ORG is a really big part of helping And governments have business continuity during the pandemic and so many companies and organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them That transformation. So, what about investors? I mean, the stock is down significantly from a peak last year DATE . Broader market turmoil. I think, you know, for investors or financially, I'd say it's mixed. You know, I think we have some businesses are growing really strongly. If you look at AWS ORG , you know, in in 2021 DATE through 37% PERCENT , you're over year, you know, it's not a 74 1 billion dollars MONEY revenue run Business. It's pretty unusual growth and we grew 58% PERCENT every year DATE in our advertising business. You know, it's a Two 1 billion dollars MONEY revenue run rate business. So, some businesses growing really strongly and you know, we've continued to grow at our retail business despite pretty crazy, comparables during 2020 DATE but I think the real challenge for us there is on the cause side and there have been several That have happened. Some of which are more controllable than others. You know, I think the part that's less control was really around inflation and I think we thought that inflation would start to attenuate in 20 CARDINAL To and with the war in Ukraine GPE it just went the other way and has significantly accelerated so the cost of trucking and line horn ocean and air and fuels to substantially gone up and I think that will tenuated some point no one knows how long that'll take I think the more controllable areas for us are really around fulfillment Capacity and productivity. It was taken about 24 months DATE to build new filming centers during the pandemic and so we had to make decisions, you know, a mid 2020 DATE , an early 2021 on how much demand we're gonna plan for. And so, you know, we we end up with more work capacity than we need right now and and there's a Things that we're working on. We we've stopped building on properties where we don't need it yet and we've let a number of leases lapse and not a small number, you know, both those things. We've had a lot of occasions in our Where we work on productivity, made improvements, and with a lot of clearly to find issues and I'm confident we're gonna get back to the right level profitability. You are gonna sublease 30 1 million square feet QUANTITY of space. Is there a mistake in the Because of the overbuilding Have to make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39% PERCENT your reura on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision and we made the decision to air on the side of our consumers and sellers. Now, how would you grade Amazon ORG 's performance with employees, your colleagues, their husbands, some Profile ORG . Yeah. I think that And when I started in this gig we had just create a new leadership principle to strive to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion. But I still think there are Areas that we can keep improving. You know, and I think Yo PERSON the first one I I mentioned is safety you know I I think that you know in order for fulfillment centers that is the top priority and you know when you get into the details the numbers and outside of all the spin of it all you know we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and and an area that I'm passionate about and the team is passionate about and I think we have a lot of work we can do to make our employees everyday lives easier. We have we've notified kind of a top 100 CARDINAL list of Areas that we can be better at that we are just metronomically stepping through and so we made a lot of progress but we have a lot of work to do still.
Kind of a top 100 CARDINAL list of of areas that we can be better at that we're just metronomically stepping through and so we made a lot of progress but we have a lot of work to do still. Ela must just came out saying he has a super bad feeling about the economy Tesla laying off 10% PERCENT of his staff Jamie Diamond PERSON says he's preparing for an economic hurricane. The World Bank ORG just slashed it's forecast for global growth. How do you feel about the economic climate? I wasn't planning on giving any guidance Please. But super bad or super super bad I I think there's some things released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline. And if you believe that that equation's gonna flip at some point, which we do. I think it will flip over a long period of time. If you look at different downturns, you know, should we have one at some point? We've been through a few, obviously, in the 25 years DATE At Amazon ORG . Customers changed their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow. We have a road map that's, you know, Probably 3 to 5 years DATE long and we're gonna continue to invent. We're Continue to be insurgent and we have a lot of work to do to get to where we think we ultimately can get for customers. No, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been overvalued and this also course matters to employees who are Paid ORG in stock. You know, look, I've haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public. I have never tried to predict what the stocks gonna do and anytime I've tried to a little bit, I've been wrong. So, you know, I think it's it's pretty hard to Pretty hard predict what's gonna be in any short period of time. I do really believe that Benjamin Maximum PERSON bed. In the short term, the stock market tends to be a voting machine in the long term intense to be a waiting machine. I think if you, you know, we've been through a lot of points in 25 years DATE at Amazon ORG The macro factors are off and Stocks are down. Our stock is down but you can't really control that. You know, we have a concept. We talk about a lot of Amazon ORG . You know in the ultimate output for a company is share price you know and then other big outputs are free cash flow or profit or whatever you can't Manage the outputs. You have to manage it. The input level and that's where we spend all our time and so if you do the right things for the business long term, things tend to work out. I think we've had very good returns for investors Expected ORG to be true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how? Has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. A lot of the satellites have propulsion systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offer to help these companies know how to maneuver their machines Yeah we offer a collision avoiding the survey it's a subscription service we'll send you an alert up to 7 days DATE in advance if your satellite's gonna come dangerously close to a piece of debris or another satellite companies have been doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now the risk of Just because we've installed so much more hardware in the space. Are you have a big collision that creates a cloud of debris and now all the other satellites are flying through this whizzing map.
Installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this whizzing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up What are the moon shots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is Astro PERSON the home roll better is it something else Well you know we have a unique way that we look at Big new investments and I'm not sure it's right or wrong. It just happens to be our way. And we ask ourselves when we're considering something. Four CARDINAL questions. We we ask If it's successful it can be big and move the needle in Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have confidence there if not can we acquire quickly if we like the answer to those questions we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation and investments that seem pretty obvious like you know when I got to that company was Only retailer and then we expanded to music and video electronics and the obvious people. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something that people externally and internally thought was a little bit nutty at the time but just Imagine ORG what Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments from making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Netflix GPE and Disney and if so how? Well, I know we're very bullish on it and remember we all the all the miles are a little bit different but for prime video, we have 200 1 million MONEY plus prime subscribers who are, you know, get that entertainment for free by Of prime and and so we have a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show Richard PERSON earlier in the year DATE was a huge hit we you know we had Nasals season we we just launched the boys season which is are you a big boys fan I am a is Amazon Vott it's very good of course we've go to the rings coming up you know in On Thursday DATE at football. So, I'm very bush PERSON about it. We also, you know, we're excited about what we've done with MGM ORG . You know, I think some of the acids there will go very well with the rest of what we're doing entertainment wise. So, if you look at Warner Brothers Discovery ORG in Paramount Stars and Global. They're building really Significant subscription businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant grocery business which is, you know, early stages for I I'm excited about Kyper FAC which is our low earth orbit satellite that we're building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about Different the world is. When you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . You're building the world's best personal assistant. We have, you know, 200 1 million QUANTITY endpoints already that are using Alexa ORG . We're clearly onto something Aaron PERSON . And then you are our Thomas driving right healing Zukes PERSON that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that also is a chance Be really significant. Now, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different company. Just like we were when AWS Came ORG successful. So, I think they're very worthwhile investments and bets and I'm optimistic about them. We didn't mention Astro Hey Hey Facebook
I think they're very worthwhile investments and beds and I'm opti You didn't mention Astro GPE obviously though powered by Alexa ORG but I mean our home robots gonna be feeling right It's not really widely available for sale what's I hope you get one. Okay. Thank you Everyone's very curious about Jeff PERSON 's role these days DATE . What kind of executive chair he really is? He said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside it looks like he's really focus Philanthropy ORG . He's focusing on space. What kind Executive chairman is he What you know Jeff PERSON has always gonna be involved and he has you know I feel very lucky to have been in Amazon ORG for 25 years DATE . I feel very lucky to have worked directly for Jeff PERSON for 20 CARDINAL of them. And we have AA really close relationship and have for a long I mean I think we share a lot of the same values about customers and how important is the optimize for customers and how high standards they need to be you know given how easy it is for people to switch The importance of invention and speed and so you know I just feel very lucky to have had the chance to work so closely with him. So, is your relationship? I mean, he was your only For 25 years DATE , right? Is it relationship Mentally different than it was when you were the head of Every single job you have, the relationship is different. You know, remember might the first couple years DATE I work for Jeff PERSON , I worked is what we call the shadow then, what's really like achieve the staff and That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and it's different when I'm in the CEO role but you know the cost and has always been that we have a great relationship and Collaborate really well. Amazon ORG is poised to become the biggest private sector employer. In the world second ORDINAL only right now Walmart ORG is is in that spot But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse. I know you've been spending a lot of time at warehouses When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired pulled off this union vote what's your message to Like him. Your message to the folks who think maybe we should join a union. You know, I think that in the first thing to be clear about is that employees get to make that choice whether they wanna have a junior or not. They always have had that choice and it continues to be their choice Yo PERSON we happen to think they're better off without a union for a number of reasons including the fact that you know it's it's much harder when you have a union to have a direct relationship with your manager And to get things done quickly. So, if you see something on the line that you think could be better for your your team or you or your or customers, you can't just go to your manager and say, let's change it. So, you know, there's a whole process Bureaucracy that you have to go through to be able to do that. You know, and and we get, you know, when there's a union, we're gonna get the feedback filtered by what the union decides is worth bring up we'd much rather hear from every employee. On their mind and so, you know, I think if you wanna continue to have the structure that we've had for all this time, you have to have really competitive benefits and then, I think if you look at Amazon ORG 's, Unusual on this space we champion the $ 15 MONEY minimum wage several years ago DATE Starting salaries now over $ 18 MONEY an hour which you know is is more than double the federal minimum wage. You get full health insurance and 401 CARDINAL K and 20 weeks DATE up to 20 weeks DATE of parental leave and if you wanna get a college education, you haven't had one CARDINAL Your choice program that let's our performance center associates be able to do so. That is a very unusual and compelling set of benefits and those were all accomplished without a union. So, you know, I think that we realize that we, you know, we have to continue to work on the relationship with our our employees and we need Continue GPE to provide the the right benefits and you know we need to continue to work on safety and and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously. Mark that you want to make Dill.
The mark that you want to make Dill. Access the financial world on demand Hear from leading economists Policy makers And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring just see what's moving the markets. Visit Bloomberg PERSON . Com webinars Why did the biggest names in business choose Bloomberg PERSON ? That is a great question. Great question. Great question. I'm glad you asked that. What is the key to being a really good investor? I tell them it's the surround yourself with and work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest ambassadors in the world. The people that I would like to have managing my money. At Revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. The FTC ORG has revamped its anti trust inquiry into Amazon ORG and by some account Is Accelerating it. Are you preparing for an anti-trust lawsuit from the FTC ORG ? If you are a large company, it's growing as to a significant extent like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if if somebody look That we will stand up to that scrutiny and I you know I think that's what we've tried doing running the business. We can't control what, you know, you know, whether organizations bring different suits against us but I think if you look at our business, if Look at the if you take out of you know take out of the equation that they're they're may not be the most objective you know leadership when it comes to Amazon ORG and that organization if you look at the facts you know in our retail business we're about one% ORG of the worldwide retail market segment share And remember 85% PERCENT of it is still offline And if you look in our AWS ORG business Yo ORG about depending on how you measure it 95% PERCENT of the worldwide global IT Spanish NORP on premises you know and then we have a cloud business and then we have a portion of that you know we were leading market segment share in the Part of this but we operate you know we compete with NWS ORG is really on premises IT in addition to the clouds so you know these are relatively small percentages of of Reply and you can kinda step through all the businesses and I think simply because you've been successful in a few different businesses, doesn't somehow mean that you have a natural market power. It just means you've been successful in a couple different We're experiences but we still have a relatively small amount of market segment sharing in those areas. What about the SEC ORG ? You're being sued by them over third ORDINAL party data and how you used it. Do you think in the past Amazon ORG made mistakes with letting Employees internally see How those third ORDINAL party sellers were doing? Pretty good control. I mean, you know, we've course disagree with the premise of that but I would say that we have very good controls with respect to the data that the different employees that's were able to see and by the way, I think that we can be better for sellers. You know, I I think that Yeah we can have better tools from the get started we give better tools from the manage what they're doing across their their different Units ORG . I think we can communicate better. There's a whole bunch of things we can do better. And we agonize over every single email or communication we get from sellers. We do very regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with On and I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes Sellers ORG don't really long for e-commerce software.
Business by virtue of selling on Amazon ORG versus not a completely changes what's possible sellers Don't really long for e-commerce software that exists in lots of places And it is not very expensive what they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects can be in terms of This is their building. So, we have a lot of work to do there like we're doing a lot of other places back. I think we were very strong partnership with sellers. What's the view of the supply chain On how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still a really, you know, significant issue All sorts of businesses. We have work really hard to open a lot more. Points of presence and ports in the in the increase our capacity in getting products in but I think it's gonna be something that companies battle with for some time. You made a huge mark. On Amazon ORG with AWS ORG obviously. Mark that you want to make Still on Amazon ORG . I mean, in this new role What's gonna define the Andy Jassie PERSON era Well, I I don't I don't really think of it that way. Emily, I mean, I I don't think it's really about any jazzy era or anyone person. You know, and and by the way, AWS ORG was not about anyone person. That you know, if you spend a time on AWS That is an unbelievable team not just an incredible leadership team which it is but just top to bottom and then the number of inventors and people care about customers Operate NORP , you know, something where it has to work almost like a downtown. It's it's always teams and so, I look at every single one of our businesses And you know take our retail business or our consumer business which is the oldest for businesses Five% of it still lives offline. Oh my god. I think we have a lot of upside and a lot of growth and I think as much invention as we've seen Last 25 years DATE , you know, the time I've been there, I think it Small compared to the next 25 years DATE . There is a lot for us to invent. On behalf of customers and so you know, I'm excited to be part of the team that makes that happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we have a responsibility to do that and so you know it's it's it's a long journey that we're working on but I'm excited to be part of it and you know For a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you. David Weston PERSON . We think that's the next secular shift. Renewables. Level of uncertainty that we need haven't had to deal with.
Certain game that we haven't had to deal with. Television and radio. Communicating for staying in touch. Companies now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so software is come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is It because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. For the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI EVENT ? Inflation is a terrible thing. Inflation you could tower. Rainfall GPE . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Eric Shatzker PERSON and welcome to Bloomberg's Front Row ORG . Today DATE , I'm talking to Jean Hines PERSON , the CEO of Wellington Management ORG . Based Wellington GPE is one of the world's largest asset managers with almost $one MONEY . 30 billion CARDINAL of investments but because it's a private partnership the firm has been shrouded in mystery. Jean PERSON is changing that. She's also making ESG investing one of Wellington GPE 's top priorities. She says sustainability will transform the structure of financial markets. We don't think it's woke we think it's part of like a very very important part of studying the That in the risk set of of 5000 CARDINAL companies. Is that to say there's alpha and ESG or alpha and sustainability? Yeah, absolutely. Do you believe that? I believe that. Jean PERSON and I explore the strategies and perspectives that make Wellington GPE different and are defining her tenures CEO. Virtues and challenges of active management what to expect from Wellington GPE 's expansion into alternatives the value of staying private here's my conversation with Jean Hines PERSON . Jean Wellington PERSON . The world's largest investment firms. But To Black Rock GPE , Sidelity Vanguard GPE . I could name others of course. Hardly known. And certainly not well understood Why? For a long history, we have had a very low public profile so that that would be number one. I would say another reason is that we are a subvisor. So, our largest business one of our largest businesses to be a sub To other companies that are well known household names such as Vanguard ORG and Fidelity ORG and T Row Price for example. So, we would we don't we don't market directly to consumers. We are the content provider. So, you combine those two CARDINAL that we're not, we're not actually, we're not a household name, brand name, but it also at the same time, we had a very low Profile ORG . Probably the reason most people don't know us. Is Public profile flying under the radar if you like being a little mysterious good for business a competitive advantage. It probably served us well.
Is Public profile flying under the radar if you like being a little mysterious good for business a competitive advantage it Served us well over time. I think for our current, if you, if you look in 2022 DATE , why am I talking to you today DATE ? That our brand is known for our content. I think Very importantly and maybe even more importantly I also think it helps with talents So, it's very interesting that, you know, for years DATE and years DATE and years, we would be, we would try to have track talent and no one would ever know anything about And that sort of that was fine when we were a Boston GPE -based company but when we began to globalize and and begin to hire investors all over the world that didn't serve us well. The importance of having a Most of the asset management industry has made a bet. Yeah. On sustainability. Yeah. But suddenly ESG is is under attack Right there are state governments. Here in the US GPE that are waging war on sustainable finance. They they're calling it wokehism. What do you think of that? We're not investing on the same ability from a value-based perspective. We're investing in our capabilities from a how do we research companies? How are these companies earning? It's gonna how what are the risks to the News from ESG factors what are the opportunities for companies from an ESG factor so we don't think it's woke we think it's part of like a very very important part of studying the opportunity set in the risk set of of 5000 CARDINAL companies is that to say there's alpha and ESG or alph Sustainability PERSON . Absolutely. The alpha I'll be in the nuance of company research You know, what, you know, which company is in Science tools industry for example are going to create products to help biologic manufacturing be less admitting you're only going to be able to figure that out by meeting with 20 1000 CARDINAL companies like we do every year If you will of like building a momentum model and back testing it. What the factors were in the last decade DATE ? Almost every CEO. In almost every industry. Grew up believing that globalization was good. And globalizing has been a priority. Yeah. Of Wellington GPE 's for. Yeah. 15 years DATE . Yeah. Is that Case. At the end of my tenure at Wellington GPE instead of having 30% PERCENT of our employees in Europe LOC and Asia LOC it could be closer to 40% PERCENT of our employees so we are And intentionally continuing into invested in our offices around the globe but you're right the de globilization is we're in a period of regime change and declabilization I don't think that necessarily Our business to the extent that there is great investment talent all over the globe. Really great investment talent. We're we're we don't have a monopoly. We used to think we had a monopoly of investment talent in Boston GPE and that clearly wasn't the case. You know, the reason we began to globalize our investment platform is is that the world was expanding the number Companies that were in Europe LOC and Asian NORP who are we to say that we're gonna follow all those from our Boston GPE office That was the reason we began to expand and I think that is still true that we are is a global firm. This is a global economy and even if if there are certain trends that are de globalizing. There is still a world there for us to either think about Company perspective or think about from a from a economic from an economic perspective. China GPE has become And is still becoming an increasingly complex place in which to do business. How do you manage that? So we have a presence in our Hong Kong GPE office and we have a small presence in our China GPE and and in China GPE We're saying hi office. We are expanding our license to be able to invest in in the onshore China GPE . Right now, it's small. But with an important place for us to do research. Are you already starting to do anything differently because clients are Concerned about inflation but
An important place for us to do research are you already starting to do anything differently because clients are Concerned about inflation because of the impact on their portfolios of rising rates because of the potential for a recession Long lived it may be. Oh I think our clients have not made major changes. There's definitely more interest in our our commodities capabilities. Our inflation capabilities, our value, investing capabilities, which have been out of favor and and unfortunately for for us, we continue doing Those teams. Are probably on the margin more interest than they have had in the past Tag on the product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun dart PERSON patchai Microsoft ORG suction adelaide IBM ORG 's Arvin Krishna PERSON my crime technology Sanjay Mayhotra PERSON and that's And that doesn't count Indians NORP running companies all over the world. Incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Reforce of the immigrants receiving coveted Hone B visas for the US GPE . And it's a Wellington GPE is an active manager Fixing PERSON ? No. No passives? No. How come? That's not our core skill set going back to what is our core skills that our core skill set is being a research based And having these teams of of portfolio managers with different skill sets that practice their philosophy and process. There were research-based content company, generating insights about the world. Let's completely opposite of passive investing. Am I correct in saying that the implicit promise to investors in actively managed Is that they'll either get alpha I'd beat the market. Yeah. Or better risk adjustive returns. Yeah I I think for us that it would I think Clients are asking for both of us, right? Hey portal go alpha Alpha and risk adjusted returns and that's Post a full financial crisis. Risk the pathway returns has become more important. But you go back to the basics. If you can generate 100 CARDINAL basis points of Far ORG a 200 CARDINAL basis points of alpha over indecease that is a tremendous compounding effects. The reality, however, is that across the asset management industry, the active. Yeah. Investment management industry. Is oh or sometimes negative after fees and the returns aren't any better on a risk adjusted basis so If that remains the case what is the future for active management We need to earn a return. We need to earn it. We need to earn that alpha. So, that's that's what we're trying to do. We're trying to we've created an environment. We already have this and I I do mean this. We have an incredible investment ecosystem. We don't have a CIO. We have an 600 CARDINAL person investment ecosystem that that collaborates, that shares Different ORG opinions on the same subject are welcome and thrive. If we can continue to do that and that's that that's the input. Like can we do that? Then hopefully our output over time. Will generate those returns. Private assets and alternatives. Yeah. Are still a small piece. Yeah. Of Wellington GPE 's $ One MONEY . 20 billion CARDINAL .
Put over time. We'll generate those returns. Private assets and alternatives are still a small piece. Yeah. Of Wellington GPE 's $ one MONEY . 20 billion CARDINAL in NAUM. How do you grow those parts of the business? Yeah. When the competitors are large? Established and in many cases, excellent at what they do. Into the private business in 2014 DATE and so our first ORDINAL fund, our first ORDINAL , first group of fund is now on. It's fourth ORDINAL fund. So, we. That was the the growth equity initiative. Yeah, so we have four CARDINAL by the end of this year DATE , we're gonna have four CARDINAL platforms Growth equity Biotech climb a technology and investing in diverse founders. So, where else can we go? So, that's the question. Like, where else are Yeah the world can we go we We don't have to be it's not about being number one CARDINAL or number two CARDINAL it's about growing that part of the business and and generating great results for clients that help that help the overall business the same is true on On real estate. So, we have a very strong structured debt Capabilities as well as real estate equity capabilities. So, can we attract talent to help us all go compliment those on the public side? You know, longer term, we we have we have we have One hybrid fund. You know, you could envision us having hybrid funds by sector that could that's like a natural extensions. We have such strong sector teams. So, those assets are what right now. All together. By the end of the year DATE , they should be seven CARDINAL or eight 1 billion. So, it's a small part. But still an important part of the That that's that's privates and alternatives. Privates and alternatives are seven to eight CARDINAL . The liquid alternatives. We've been in that we've been in the long short business since 1994 DATE and that that business is approximately 30 1 billion MONEY . Okay. So put them together in your getting 40. People. In your position who started out As administrative assistants. Yeah. And Rose PERSON to become CEO at the same company. Really, the only place you've ever worked. Yes. Tell me your story. So, go back to college. So, first ORDINAL of all, I, my parents were Irish NORP immigrants. My mother raised six CARDINAL kids and my father was a brick layer. So, I didn't know anything Stock mark. We didn't talk about stocks. At my house but I I would say they were very focused on education and so I Practically a full scholarship to Welsie College ORG . Which was an amazing experience. In in as one of those one of the classes I took which was in my junior year it was sociology. It was a sociology class That you had to get a job. I recalled the class you have to take. This was the class you had to take but I just happened to get a job at a brokerage firm in Boston GPE . And so that was my first ORDINAL introduction to the stock market and I did not like the cold calling part of the business but I was just fascinated by the stock market and that's how I found my way to Wellington GPE and Wellington GPE was just beginning to expand they were high higher in college graduates as administrators So that's the story. Start to manage money. Yeah. Did you realize that this firm was interested in cultivating you as a leader? So, I started managing money in 1997 DATE and so and every year from then, I began to manage more money in 1999 DATE . I I was able to run a biotech Folio. Portfolio management skills. Hey I began my leadership journey Right around the time I moved to London GPE . So, I moved my family to London GPE in 2007 DATE and 2008 as we began to globalize our investment platform. It was really about culture. It was also becoming more independent from my cocoon here in Boston GPE . I'm from a very large family, a big Irish NORP family. I had my my my life was planned out. I had social events all the time. Barbecues here. So I actually do think moving to London GPE . Being alone with my small family unit.
I had my my my life was planned out. I had social events all the time. Barbecue ORG 's here. So I actually do think moving to London GPE . Being alone with my small family unit. Being away from the person I worked with for 16, 17 years DATE , was the beginning of my leadership And then i became managing partner in 2014 DATE . The world's largest health care fund. Yes How's that possible? With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. While also being the CEO. Yup. And while also being I hasten to add a mom to four CARDINAL daughters. How do you do that? So everyone has super strengths, right? Everyone, everyone, everyone has super strengths. One CARDINAL of my super strengths is your superpower. Superpower is organization. If I wasn't as organized and and sort of superpower and processes, I think it would be, it would probably be impossible. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. Of all the worlds this huge Thing. Output of Germany GPE since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? We've talked About The virtues of being a private partnership Have you ever wondered to yourself of Wellington GPE would be better off Public company? No. Why not? I've I follow public companies my whole career and from a lot of public companies you have to really focus On And it's more short-term focus than it was 15 or 20 years ago DATE and the best companies continue to operate with a long-term focus. Our private partnership just allows us to be long-term focused. The other question you would ask, what would ever make us go public? It would probably be some drama Change in the industry where we need to capital in a way we don't need today DATE . This company makes Alpha for our clients it is a profitable business I was Fishing for something a little bit different which is along the lines of this. There aren't many. Public betrayed companies. Yeah. With Assist ORG under management in the neighborhood of Wellingtons ORG . Only handful. But they make You know those with a one CARDINAL handle on the trillions CARDINAL Make somewhere between one and three 1 billion dollars MONEY a year. In net income Is that ballpark for Wellington GPE too? Get me there. It's a nice try. Say is that we are we participate in the asset management industry We have a A similar More.
Also say is that we are we participate in the asset management industry We have a You know a similar We don't have the we are we are an investment management business so we earn a fee Damaging the money. We're not we're not heavily distribution oriented business All of our compensation though is geared towards performance So everyone at Wellington GPE will do better if we perform for clients and that's the How do you decide who gets paid what? So that's that's the other part of our partnership. The three CARDINAL managing partners which I've been won since 2014 DATE . Distribute or determine the profit how the profits are split at the firm. So you have to imagine that has to be tremendous trust in the three CARDINAL mansion partners and that trust Who's having impact that we're not gonna play favorites that we're gonna be really fair. Ability to become a partner at Wellington GPE A really critical part of our ability to attract talent. Talent has always been. One CARDINAL of the hardest. Maybe be hardest problem to solve for in the investment business. And that was true before the pandemic, right? And the demands that it has created for flexibility and the demands that it has created for diversity. How hard is the talent problem now? I think the pandemic has shown us and it probably should show most companies that it's not about buildings. It's about the culture. It's Shared NORP values. In the future, we're gonna be more flexible about where our talent sits. How much of Wellington GPE 's success in the future depends on how well you integrate technology? I think 5 years DATE from now, we won't have a technology department. We'll have technology will be integrated into Business and I'll give you some examples. We have portfolio construction tools. We have ways to screen Portfolio manager has a philosophy and process and they have AA tool that helps them scream based on that philosophy and process We have these tools now that are bring very qualitative things into a quantitative framework. We have our own internal risk portal. So we how do you continue to make that a greater and greater we already talked about ESG and how much it's data oriented how do you make that more and more part of the portfolio construction process Which I do believe we are in a more complex investing world where it's not just about revenues and earnings and PE ORG it's about a This mosaic of things are gonna impact the value of a company or the value of that return like what's the path of portfolio returns Is going to play a bigger and bigger part of that. There are A lot of acid managers Who do you think of us Wellington GPE 's main competition Well I will say I've talked to quite a number of them in my new role as CEO and I have a lot of respect for my peers Observation would be that they're all a little bit different, right? They're all a little bit different. But if you look, if you look at overtime, who has sort of a research process that's similar to us? Like I would say capital group, T-roe price, I'm often in meetings with capital and T Row Price, you know, Pimpco PERSON on the fixing comes side is probably a competit Many many small firms and on the long short side. Name three CARDINAL things you would admire. Firms and wish Wellington GPE could do as well. Alright. Well, this is okay, give me a minute TIME to think about this. I think that if you look at Black Rock LOC , they have, they use their As an advantage To interact with clients. I don't think anyone really in that in that way can compete with them. In terms of the competition with a lot and I think that that is the just very impressive. Capital group and they're in their There are they're distribution in the US GPE for example. Let they have a real, they have a very strong relationship with broker dealers in the US GPE . That's also very impressive. If you look at some.
For example. In the US GPE . That's also very impressive. If you look at some private firms, this is not so much direct competitors but firms that have been around for 20 years DATE . I think it's a real advantage if you've been on the private side. If you just have, if you've been around for quite a long period of time. So, obviously, firms like Sequoia ORG , where they're not doing exactly what we're doing But they just have sort of this I'm studying them quite a bit just because we are How do we get how do we be excellent in the private business and there's a few of them that have just done such a good job Over time. That's been very impressive. Is growing this business important to you and to your fellow partners? 1000 CARDINAL companies Always analyzing how our company's relative to their relative to their competition and their peers. So, we wanna do we wanna win, right? So, we wanna do well. I'm also a strong believer in you can't aspire to grow just for growth sake you we have to be super focused on the inputs and if you do really well on the inputs you will grow as a firm the leadership team I think our partnership is very focused on that like if we have the right inputs and that means are we investing in talents Are we investing in new capabilities? Are we expanding in areas that we think will help our clients? Then, hopefully, we will and we can deliver performance. We will grow. Let's talk about the legacy that you're in the process of defining. When your colleagues and your clients. Yeah. Look back. On the jeans, hinds era. Yeah. The CEO. They'll say you accomplished what We have made our collaborative Ecosystem stronger and that we we have it better firm as growing so we've been able to expand the partnership and that we are delivering most importantly we're delivering Outcomes GPE to clients and maybe finally it's like to like it's more about like I do the previous COS ORG have done and figure out ways to strengthen Wellington GPE so that it's That we have another 40 50 years DATE that the next set of CEOs can continue that this is a now this is a I'm just passing through in a steward of this firm that you know my almost 40 years DATE here whatever whatever I retire that That I will know with you know know that this will this firm will be very strong for the next 50 years DATE . Thank you very much. Thank you Eric PERSON . I really really enjoyed our time. Hey Crucially important and I think we've moved from Attitude from it's an indulgence a waste of time almost an illness that needs a cure for something Universally important to human life as sleep mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understanding It's easy to memorize things that makes you smart if you can Act a lot of facts but if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what you bring figures out while you're sleeping.
Do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Business authority. So Like you're the CEO of Roblox but on Roblox you're builder man. You know that name it we just started up There's maybe 2 weeks DATE after we launched and we're all picking our own usernames Everyone picked one I just said You've had the same avatar since 2004 DATE . That's right. That's awesome. Do you still play? I wish I could play the whole day. I have to be a CEO. So how often do you play? I'm probably on everyday but not as much as I would like. I have four CARDINAL kids. I have a 9 year old DATE son who's on roadblocks a lot. He said his favorite games are the tycoon games. Oh lumber tycoon theme park tycoon. I love those. I love all of those. I have a bit of a theory I have four CARDINAL kids. Oh, you do? Yeah, they're now. They've grown up watching me do this. Yeah. Another, they're pretty savvy, social media people, but I'm optimistic someday. They're gonna be using Roblox PERSON for some other reason. Like communicating or more working or something like that. And then they're gonna be, oh gosh, it's The robots. It's a Port Monto of robots and blocks where users can build and play games in a 3d world Global online gaming juggernaut that kids are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact Roblox PERSON was building the Mediverse PERSON long before Mark Zuckerberg PERSON claimed a new name for Facebook. Really look like and how do we cultivate a civil digital society within it that keeps kids safe? Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roadblocks CEO and co founder David Bazooki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be with you. Well, I'm a parent. Really excited to have this conversation. For parents and anyone out there who still doesn't quite understand. Our kids doing on Roblox PERSON . Yeah, kids on Roblox aren't just playing. They're learning, they're hanging out together. Can't be together in real life they're hanging out on roadblocks they Hiding LOC hiding goes sick they could be pretending they're running a store or a pizza parlor they could be making the next big game or adventure so it's really a wide range of things and it involves doing things together pretending you're together Right now it's mostly Games or experiences four CARDINAL kids buy kids how old are these players how old are these developers we have young players who are getting interested in coding or
How old are these players? How old are these developers? We have young players who are getting interested in coding, who are getting interested in designing things, but more and more the community on roadblocks has blossomed into this Rich PERSON ecosystem thousands CARDINAL of developers making a living on the platform some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year so how many of these developers are really kids How many of these developers are now grown ups? Yeah, well, I think two 1 million CARDINAL plus developers, a lot of them are grown ups and more and more. In addition to the natural organic people that started on roadblocks, we're starting up studios come in on the platform as well. Professional game developers who are developing on other platform Starting to take a look at it so our developer demo Although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, mus Does that change the dynamic of the class? I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform forever. By one CARDINAL of our early developers. It's not the kind of thing that I I think a normal studio would ever think of. But when developed by young creator, you know, we're gonna We're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it. There's gonna be a lightning storm. Like that kind of stuff. We see a lot of that creative game play coming from the younger developers. What were you I was kind of a nerd when I was a kid. I was studied really hard. I luckily grew up in Eden Prairie LOC , Minnesota GPE at the time it was out in the boonies from Minneapolis GPE , Minnesota GPE . There were sandpits and so We did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods the one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time and that kinda got me interested in this I also heard you were the captain of your high school TV quiz team. Yeah, so think of think of Minnesota GPE in the 1970 DATE 's and 80s DATE where every weekend DATE , two CARDINAL different schools compete, four CARDINAL students from each school, you know, and a really funny four CARDINAL by four CARDINAL configuration on a quiz Thing and so yeah Eden Prairie had a pretty good quiz bowl team. You eventually made it to Silicon Valley LOC . Yeah. Went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid and you coming to life. You know, went to school, had a couple hard years DATE with jobs that weren't really that exciting. Took a few months DATE off and I got really excited about there's this whole blossoming educational software marketplace at the McIntosh ORG . It just been introduced and it was just really interesting, exciting. I did a survey of all of that and a lot of the educational software was very So when we looked at physics it was a whole different idea could we make a wide open labratory we could build anything any physics experiment bring it to life measure it see what it feels like you sold that company made some money became an investor and you invested In Frester PERSON . Oh yeah, wow. I I had a friends to account. I'm dating myself a little bit. But I had a friend to account. I'm curious what you learn from the early days DATE of social media. Yeah, so one thing I learned is it was really fun to invest Not my sweet spot. Like my sweet spot is trying to build and create things. I remembered I think having account number 79 CARDINAL on friends. They're and just seeing that wonderful thing of finding other people, friend of friend, playing around with that early user interface. It's a little bit almost thinking of interact Physics ORG where we were simulating the world and then friends they're seeing how important social is those are a couple of the components that have come together in roadblocks so when you start a roadblocks in 2004 DATE what was the idea back then the feeling of this new category for me started Almost inexirable. It's a category that people have been talking about in sci ORG fi for many, many years DATE . We've seen futurist talk about it. We've seen
For me started feeling almost inexerable it's a category that people have been talking about in sci ORG fi for many many years DATE we've seen futurist talk about it we've seen a lot of movies we Worth LOC thinking yes immersive Experience. Kids flocked to Roblox during a pandemic. Of the pandemic 2021 CARDINAL 45 1 billion dollars MONEY market cap we spoke on that day even you have said that kind of growth won't keep up what kind of growth can we expect from roadblocks in normal times we believe Part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school. How people gonna go to school in Roblox PERSON ? If I happen to be taking my science class and I can't get into the classroom and we're dissecting a frog. We'll probably dissect the frog in something like Roblox PERSON on a sim Which I think is gonna be very very powerful and for our company where there's a lot of people that are gonna end up working all around the world some of us will be in the office some won't having a common threeD place where we can have those water cooler conversations where everyone has a desk but we get that serendipit Thing where we both happen to go over and chat. I think also is gonna be very big. Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Bloomberg PERSON has enhanced search on the terminal to deliver what When you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. A lot of the satellites have proposal systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver their machines Satellites around but it's it's sort of like a harder problem now. The risk of Just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloud a debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the likelihood of the collisions going up Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built. A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in the space that I think is ultimately got so many years of growth to it and is a new category following other types of technologies. There's still so much innovation to be done and there's so Invention to be done in this category that is mind boggling. The term is just marketing. How do you respond to that? This type of technology is much more difficult than the net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zuckerberg PERSON announced his plan to Change Facebook's name to Meta ORG as if it was something new did that kinda bother you? No, of course not. It's Hard to predict in five to 10 or 20 years CARDINAL . Where did the companies that really figure it out? And there's so many elements of innovation that are needed. Having a UGC ORG community, one CARDINAL of our strengths. We think that's like a huge starting point for us, but we're early in our quest for innovation here.
Having a UGC community, one CARDINAL of our strengths. We think that's like a huge starting point for us but we're early in our quest for innovation here. Roblox has built a huge business selling Does this evolve into a much bigger marketplace? That people would ultimately make a living on platforms like this that started this digital currency is very roadblock centric and that we're a systems company or utility so it has form this robust economy it's allowed us to keep robot you know Roblox PERSON is free for the Majority. Would Roblox ever partner with some of these other companies working on the Metaverse whether it is Meta ORG or Unity or epic or Microsoft ORG ? Technology of, you know, how are we gonna ultimately support 50 1000 CARDINAL people in real time on a phone, going to a concert together and waving at your friends. I think that's gonna be a lot of engineering work that each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one CARDINAL place to There I think they'll be lightweight ways of starting to think about that. So what role do you think Apple ORG and Android ORG should play in the Metaverse? And and would their policies need to change to really support this vision? The biggest thing we would Advantage of if it were to happen is a change in those store fees. We we stay out of it. We like google and apple kind of run their businesses. But when we think about more and more developers making a living on platforms like us and having to build stuff. If those store fees were to change, we would move most of that money back Developers. Your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yeah. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job? In the third week DATE when we were live you can go imagine Eric PERSON and myself back in our small office Eric PERSON and I said oh my gosh safety and civilities it's we're gonna have to do we had maybe 100 CARDINAL people at the time chatting on roadblocks we saw a few not that egregious but early signs and we just made the call this is Be the foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes on our platform gets human reviewed we filtered texts very stringently especially for 13 DATE and under players Use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us. After mistake are you about AI and tech being able to do that I'm really actually optimistic we would never compare to the real world because our standards are so much more stringent but I do believe this will just keep getting better and better and I think over time it'll get to the point where if a 6 year old DATE is on Platform PERSON . It's literally as if the parents wanted to be there with them watching everything will be able to offer that type of thing. No, a lot of parents are terrified. They're terrified of a future metaverse. They don't understand the parental controls. Do you understand that feeling? We do. We actually have I think it creates a higher standard for us because I think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, Playground PERSON for virtual fascist. Kardashian ORG 's own child Sex tape of her. Happened there. That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in the off our platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention. But very unfortunate and Well, you know, our vision is to be the most civil place for everyone. The CEO of Alphabet and Google this question about kids and tech habits and screen time and he said it's something that even stresses him out you know this is the guy who runs one of the most powerful technology companies in the world I have four CARDINAL kids you have four CARDINAL kids did it stress you out like how did you
Something that even stresses him out. You know, this is Guy PERSON who runs one of the most powerful technology companies in the world. I have four CARDINAL kids. You have four CARDINAL kids. Did it stress you out? Like, how did you deal with your kids? How much it's a responsibility of both platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more Hanging GPE out together we're being on the phone together or doing stuff together and a lot less of it is isolated either consuming content by myself or grinding away at something by myself so we do like the fact that most of this is either We're involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Crypto PERSON Have a world of young people. That won their own financial system. And their own culture. And it is very powerful. And I'm a big believer in it People ask me all the time what is the key to being a really good investor can I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars oh look way out like a science fiction writer and talk about it What I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like meta horizon worlds PERSON ? Is Found PERSON , you know, more experiences like that for adults. Ultimately, as fading into the background is a utility like the electric grid. Even those photo realistic and there's all these awesome avatars and connection Identity around the world. The things we start seeing built on this are wide range of things. So you imagine this not just for kids but for everyone That's one. What about entertainment? Would Roblox ever make a Netflix PERSON show? We would love it if one of our developers made a Netflix PERSON show. So, we would, we would feel much more authentic if one of the creators on Roblox PERSON who's coming up with avatars and stories and ideas and characters like that. We want them to be in the limelight. Roblox shares took a dive On the back of Netflix GPE results which Plummeted. Our investors reading too much into the connection there. I think our company is somewhat unique and what is very exciting to go to work and be the CEO is being at a market like this, you know, where we think ultimately, Billy PERSON and people are gonna use this Of technology and the other exciting thing about this market Many big inventions that still have to happen. It feels like we're pretty mature but inside our company, we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step. Consider more in game advertising. Yeah, there's a funny trivia. Note I would share to all the Roblox PERSON fans out there. There was a time. The very first ORDINAL way we monetize was advertising. And then there was also a time when we had pre-roll video on Roblox PERSON . That's all gone.
There was a time the very first ORDINAL way we monetize was advertising and then there was also a time when we had pre-roll video on Roblox that's all gone now it's gone for a couple of reasons we didn't want it to interfere with the Experience and also our our virtual economy has become such a powerful way to power this that we are able to take that down. In the future though, I think there's a certain type of advertising that is kids safe, that is immersive that doesn't get in your way. And how do you make sure that doesn't take away from the Of what makes Roblox PERSON great. Yeah, I think our the people on Roblox PERSON , you know, they're there to authentically connect with their friends and as long as what we're doing with these brands is very clear and non deceptive, appropriate for those ages DATE . I think they'll they'll figure Balance of how much time do we go into a store versus how much time do we go to a crazy adventure tycoon and you know building amusement park together. So either way this could be a huge new revenue stream for you. I believe it's an awesomely Drive a new stream and at the same time we've been very gentle towards it. So, as you look ahead, what do you think are the biggest challenges? Roblox will face. Plays out which we hope it does and we have people of all ages on the platform and we're around the world. I think it's maintaining that civility as we grow, as we have older people who might wanna do it, go to a political rally, thinking ways to do that in a systemic way. That's a big challenge. It takes a lot of thought. I think thinking through the I I really like we're very technology driven company so it's fun to be running a company where we have to do this seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenge Super interesting. We do a little rapid fire section just to get this. Okay. Awesome ORG . First ORDINAL question what's your morning TIME routine? Wake up Go outside on my porch do a CrossFit workout Take a shower go to work. Where are you most productive? Home or office? Both. Different types of productivity, home, zen state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show right now What are you binging? Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's this weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. Best life hack. I think it all gets down to the joy of health really like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that, everything else just completely falls. Radio show. Yeah. Now that I've met you in person, I I get this. No way. You're pretty fun to listen to yeah what was your style like what was your Starting in college when I would have insomnia at 2 AM TIME I would turn on talk radio and you know all those famous KGO ORG people Bill Wattenberg PERSON retalia all that just listen to the people calling in So I after acknowledge revolution was acquired. I had a year DATE . I had a little time to dabble. My jam was really trying to talk about outrageous topics. You know, Bling GPE , other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. You know, it's like call your mom. Please call It's really scary if you're a DJ and no one's calling inside. I I made it really controversial. I have people come on and debate interesting topics. If you could have dinner with Steve Jobs PERSON or Walt Disney. You pick. You can't pick both. I guess I would have to slightly lean Disney just because he was not just the usher of the innovation but actually was kinda part of the some Innovation. But I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for your 20s. Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE ? Life is short. It's such a valuable commodity. What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the word balance.
All you will commodity What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the word balance. I would say can I Make my roadblocks job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job is a CEO? Every CEO job is different. Like I like doing it. So, can I figure out what my role is? You mentioned your co Eric Castle PERSON . Yeah. Tragically of cancer. Yeah. In 2013 DATE . If he was here today DATE , what do you think he would think of the roadblocks? That roadblocks has become. I think he'd be It's a good question. Yeah. Like, I think he would you know, his both of his sons have worked at the company a bit. So yeah I think he'd be very He's just such a brilliant partner. Yeah Any he also set the standard for taking the long view on how we engineer things a lot of the technology at Roblox is still You know, his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So, in 5 years DATE , will the metaverse exist? In in the form that you imagine or is it take does is it Well it it's really interesting right cuz we're right in the middle of it right now in a sense with 50 1 million CARDINAL people everyday on our platform yeah it's already here and at the same time What is ultimately gonna be possible could be 510 CARDINAL or 20 years DATE , out. So, it's it's all, the matter is really has existence since Online dial up muds. Really? TwoD. Very simple. Text. You can call that the metaverse. It's existed in multiplayer gaming, world of warcraft, Exist now with more people and in 10 or 20 years DATE it'll exist photo realistically with 50 1000 CARDINAL people you clearly have so much passion for this job Roblox your final stop on your journey. Well, definitely my final stuff but I think there's a lot of time ahead of me here. Dave Bazuki PERSON , overall blocks, thank you so much. David Weston PERSON . We think that's the next secular shift. Renewables. This is a level of uncertainty that we haven't had to deal with. Ken Griffin PERSON is moving both sit it out and send it all security is to Miami GPE the scoop was broken by Bloomberg PERSON 's Amanda ORG
Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications to softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the soft That is reading it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? One CARDINAL of my sisters that traveled me said after all these years DATE this still gets to you done. Next year's DATE mother's grade. Matters to me. Hello and welcome. If you want a long view of the battle for racial justice and equality there are few better witnesses than my guests today DATE . He went from pounding the streets of America GPE demanding change to having a direct line to the White House ORG . Attracting strong praise and sharp Criticism for his style and tactics along the way. He is a civil rights veteran, the reverend Al Sharpton PERSON , who has been on the front line of many of America GPE 's most notorious police brutality cases including caring for George Floyd's PERSON family as Black Lives Matter Test erupted around the world. So legend James Brown PERSON was a father figure to him. And now aged 67 DATE with a weekly DATE TV and daily DATE radio show to his name. He shows no signs of slowing down. He now has his latest book out righteous troublemakers in which he tells the stories of those who have protest thrown Them. Reverend Al PERSON thank you very much for being with me and I thought I'd start by asking is that how you describe yourself a righteous troublemaker? You know I got the Thought of it from John Lewis PERSON who was of course congressman and beloved in the civil rights Say make good trouble I think that I've tried to be a good trouble make all my life we'll come to your record and how that's worked and some of the tactics and how things have changed but who are you trying to give voice to in this book I'm trying to give voice to people that I feel made tremendous contributions but never got Visibility that I think that they were merited For example People in the United States GPE and in around the western world. We're not know the name of of Claudette Colvin PERSON . Claudette Colvin PERSON whose story I write about in this book was arrested for sitting in front of the bus in segregated Montgomery Alabama LOC refusing to Pussy. Months DATE before Rosa Parks PERSON but the local Montgomery Black ORG leadership didn't wanna rally around her because they said she was too dark skinned and she was pregnant and was unmarried she didn't have the moral picture they wanted It was her sitting in the front of the bus that inspired Rosa Parks PERSON . In fact, Fred Gray PERSON was the lawyer for both of them. And I wanted people to understand that so Everyday people would know that you don't have to qualify to be a Make all freedom fighter
Now I wanted people to understand that so that everyday people would know that you don't have to qualify to be a troublemaker or freedom fighter Everybody has a contribut And these people are just regular people that did something that were made and yet some of the people that you're also talking about in the book have protest thrust upon them. It's not something that they set out to do and and because they find themselves a miscarriage of justice and they find themselves in the eye of the storm. Have you found their stories and at times I know you've personally worked with them and and try to get them ready for something like that. They're ordinary people. Would become AA milestone I talk about Floyd PERSON for example Felonis PERSON was just a regular guy in Houston GPE Texas GPE George Floyd PERSON abused by police in Minneapolis GPE All of a sudden They become a global News story Anna Global Movement ORG But for long is unlike of me or unlike others didn't choose to be an activist he's trust out there and and that's one of the reasons why Nash PERSON actually network has been involved in a lot of these cases If you had to remember when a police officer Is accused of a miss D all Eric PERSON crime they have the police unions that back them up and provide them with lawyers and resources and if they need a therapist if they need People to help them with interviews that to advise them with media Families ORG have none of that. They wake up one morning TIME . Their brother, their cousin, their son is dead. Provides all of that cuz you need an institution To go up against institutions and we can provide all of that. You're talking there about the the organisation that you you head up to which helps people. I mean, you you say in the book, your job was to build a firewall of support around the Floyd PERSON family to guide to protect them Even though what had happened was was horrendous and then became the symbol of a newly ignited kind of global movement. Do you think that they could be prepared for it? I mean are they still sort of coming out of that now? I think that they show tremendous growth and and Disability but they had to have people that would advise and guide them so the perception is that Old people like Sharpton PERSON and others running when they're his trouble. No, we're calling. The Floyd PERSON family called me. I mean, can you imagine you're mourning Your brother in this case Brother was killed how he was killed you're watching on television every night and how this is killing you but there's 10 CARDINAL TV cameras outside your door that wants it immediately response and you don't know if you'll say something that might hurt the the case that you want prosecuted against Elizabeth PERSON . So, you need people that are say, be careful, don't say that. Don't say something out of rage that they can use later. All Comes with building a movement and all of that happens to people that decide i'm gonna make trouble for system that's unfair but I'm gonna do it in a righteous way and that's why I talk about it. I got the idea of because when in the middle of George Floyd PERSON , as we're talking Minneapolis GPE . And I remember in the middle of my given delivering the eulogy just for whatever reason it hit me because I've always always been an extemporaneous speaker cuz I start So I don't use a manuscript And it hit me and I said, we need to march on Washington GPE . We need to bring the issue of police reform and police misconduct to Washington GPE . We had over 200 1000 people and I'm on my way to the to the steps where Doctor King had spoke In 1963 DATE to make the speech after the families of of George Floyd PERSON with me.
To the steps where Doctor Kenya GPE spoke in 1963 DATE to make the speech at the families of of George Floyd PERSON with me family while I'm at Aubrey PERSON with me family of Jacob Blake PERSON family of Brianna Taylor PERSON 15 Victor PRODUCT family. We're all walking toward the stage. Any strongs of people I see an old man that was jumping up and down with an object in his head trying to get my attention and I said it is security around me I said What is that old man trying to tell me? They says, whatever we need to keep you moving. I said, Looks like he's in his 80s DATE . He's trying to say something Go get them and they went and got them brought them to me March DATE on Washington GPE freedom now he said i was here in 63 DATE with Martin Luther King PERSON and I wanted to be here today with you and this is the button I want 60- And that kinda horned me. I never forgot that man. Because he just went back in the crowd and i said, you know, there are people that have paid a price. Went to the march. Went to the rallies. Someone went to jail. Someone killed That knew they were never gonna be in the newspaper The next day DATE . Call Lamacho PERSON . These people came 200 1000 CARDINAL people in the middle of a pandemic and their own expense and their own risk why don't we that have the limelight put a limelight on some of them and that's where the book Zeppelin PERSON . Do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Find people Analyze markets You can enter phrases Or ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Here from leading economists Policy makers. And industry experts. Be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars. On that point though I was wondering when you get that call you yourself because you have been doing this for so long Faith is obviously a huge part of your life How do you deal with that? Cos you still seeing Losing their lives you're still seeing these police brutality cases. I think if I didn't have a deep spiritual life and faith it would overtake me It hurts Over these funerals and look at these bodies over and over again I've done since George Floyd PERSON maybe 10 CARDINAL funerals of victims since that there's no way that would not wear on you unless you had a faith to believe that this is the work that you Born to do.
Rules of victims sense that there's no way that would not wear on you unless you had a fake to bleed that this is the work that you were born to do Watching families. I'm trying to comfort them and at the same time, asking myself, god, how long will this last? How many times do we have to go through this before the laws are changed? So, if I were to tell you it didn't get to me, I would be lying. Tell you and I wrote about this in the book after George Floyd's PERSON funeral Last one in Houston GPE and we had the long motorcade to bury him next year's DATE mother And I remember I did the prayer I did the commitment of the body and then I hugged the family and I left ahead the airport to head back to New York GPE And I had my head down in a little teary eye and one of my sisters that traveled me said after all these years DATE this still gets to you dug it Let me tell you something young man the minute it does matter to you anymore you need to leave the movement it matters to me One CARDINAL of these deaths. How much do you feel faith is is Answer the politics of America GPE though because it is it's very distinct when you're looking in but it's so linked and you can see people on different political side Sending their views or using sometimes Christianity NORP in particular to say this is God's will. Did you think that faith is being weaponized in American NORP politics in a way that that is just unhealthy? That it is definitely been weaponized in a way that's unhealthy because I think that we've used faith as a way of Making people Or the other that believe wicked and therefore if you can make them wicked and make them some kind of of anti with god would want did it justify treating them on equally and treating Unfairly PERSON . Which is why I think people of faith have to say I'm motivated by my faith but I wanna protect people's rights. They may not even have a faith. I remember when I came out for LGBTQ rights. Many many years ago DATE . And I even supported gay marriage You on that Marriage and I said, well, okay, then, I'm not coming I think when there is just a blurring of the lines as they're still seems to be in America GPE at times with faith and with politics. I mean it can be that people do not say it as the law they see it as imposing people's views on them and I I wonder what you think would come An atheist president of America GPE or a female? President. Well, I don't I'd probably would say a female president Oh but i don't rule it out I mean when I got started as a as a youngster in the movement I never thought I'd see a black president so it's it's it would not We already now have a female vice president. Indeed, well, it's it's still not happened but I suppose whatever political side you're on, the candidate has to believe in god and has to prove it in some way. Which it's it's striking regardless of how you come at it. Just talking about the phrase righteous troublemaker And I was thinking about what happened just over a year ago DATE on the Capisup You know those rioters Would probably describe themselves in a similar way as righteous troublemakers. They believe in what they are doing. They believe in what they're marching for. And I suppose what would you say being someone who's protested your whole life? And being so divided from those with a view who have of what they're doing being just as worth What you're doing? What will make the difference of whether what you're doing is righteous or unrighteous is the end goal What are you trying to do they were there that day January 6 Stop the certification of an election that the American NORP people had chosen a president if you gonna have a righteous cause the end the golden
Stop the certification of an election that the American NORP people had chosen a president if you gonna have a righteous cause the end the goal must be righteous and your behavior to achieve the goal Be righteous. Because some say what happened on the capital was the beginning of something not the end of something and 75 1 million QUANTITY people voted for Trump ORG in the last election and I I just wondered from your side of things as it were How do you see this playing out if the sides just can't talk to each other because you've you've built movements? That I agree with those that say January 6 DATE was the beginning Something NORP . They are not going anywhere. They have gone into states now changing voting laws. Are they built an infrastructure around this big lie that Trump ORG really won? And that they want to in some way control how votes are counted and how votes are done I think we're in for a long season Confronting, voting rights, and different sides opposing different sides on these questions. And I don't know that we are going to be able to get to this dialogue of healing of for a minute TIME now. I think this is going to play itself I think the election Joe Biden PERSON and the 4 years DATE of of Donald Trump PERSON has divided the United States GPE border and I've seen it in my lifetime. Are we in some sort of calculation fears moment people are talking about that all day DATE yesterday People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with The best investors you can find. I'm gonna take you to meet the greatest investors in the world. The people that I would like to have managing my money. At the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Independent. Information and insights. From businesses most influential and instrumental. This is a level of uncertainty that we haven't had to deal with. Television and radio Looking at movements that are looking at how things can hopefully get better or improve. Of course, as I say, you've been protesting, you've been on the streets for a long, long timer, and and you've seen things that you couldn't have imagined like a black president, like you just said. But I was just thinking about tac And changing approach of course many hail the Black Lives Movement ORG protests because they didn't erupt in violence they didn't erupt in riots although their have also been divisions within that some factions calling for the defunding of the police A word on that You on that? And and where do you think the movement is on that? Because there is the vision. Is any movement there's always gonna be disagreements within the You know I grew up in the north the year Martin Luther King PERSON was killed I was 13 DATE I was already youth director There are people that disagree with Doctor King. They believed in For coming out against the one CARDINAL Vietnam GPE saying that we should be For whatever president John PERSON 's
Oh then you had those on the other side that it condemned Doctor King for coming out against the war in Vietnam GPE saying that we should be For whatever president Johnson PERSON wanted cuz he was a good civil rights president. So, these disagreements exist. I think that we need to Form the police but we need to keep measure of policing in our communities cuz we have high crimes. You've got as much a problem with gun violence as you have a problem of dealing with police that are over the line and do things that are wrong and that in in many cases Criminal. Funeral I did the eulogy of a Year old child that was killed in a crossfire of games fighting in Brooklyn GPE so we need both we need good policing Funded properly that deal with things like mental health and gun control. And there's also of course this push and hope that the police themselves will report bad cops will also come forward and and have that culture change within there as well as the the training and the policing that they've got to do that you talk about. I'm Thinking about people who maybe thinking of themselves in the way that you've described a righteous troublemaker talking about making good trouble as you said right at the beginning of our conversation and and if you think about to your your younger self And how you've changed as a protester and your tactics Your biggest regret and what's the lesson you've learned? Is that you should not From the hip. We often say tit for tat report or somebody say something. I'm almost at at the beginning of their last word answering the Be more thoughtful to make sure whatever you say And whatever you do and whatever tactics you use is taught achieving the end goal that you profess cuz people are depending on you And they expect you to be thoughtful not just theatrical. One CARDINAL of the controversies that is still brought up by your critics is your response to the 1991 DATE crown heights riots in New York GPE . To to remind our viewers these took place after a 7 year old DATE black boy was killed in a motorcade. By motorcade transporting a rabbi Broke ORG out after that death and a Jewish NORP student was killed. Your critics say you never called on the rioters to stop their antisemitic inspired violence. Is that fair? That's totally erroneous As the state of New York GPE did a study I was not even in crown heights when the rabbi young rabbi student was killed how was called by the family of the 7 year old DATE kid the next day DATE but many and the friends right wing tried to start When I was living in New Jersey GPE but these are kinds of things that you have to deal with And you keep going. That is not only unfair, it's untrue. That's why, that's why I wanted to ask you about it. I mean, you did mark the 20th ORDINAL anniversary of the incident. You wrote her an opinion piece in the New York Daily News ORG and you said, our language and tone sometimes exacerbated tensions and played to the extremists There was a response from from the young man's brother who who responded saying he felt your recollections were were sanitized and and distorted so that there's obviously still a lot of hurt and pain that Talking 30 CARDINAL what how many years ago DATE all you have to do is go to the state report who by the way criticize David Dinkins PERSON the man in anothers but said Shop ORG there was not there now I said that when I came in Maybe I could have as I did the eulogy for the Kids funeral said more things that would have been that I they would say differently but to say that I decided or or excuse violence it's just not true and even in his brother's state Leadership I suppose that you've had it's about also learning from that which is what I wanted to ask you about because
It's just when you are looking back at tactics and how protests happen and the leadership I suppose that you've had it's about also learning from that which is what I wanted to ask you about because you'll be well aware of these criticisms over the years DATE . Martin Luther King Speak PERSON to that and that's what I've had to learn. Just wanted to ask about the next generation of leaders that you have in your sights particularly around racial equality are there some that you are particularly keeping Ion. Many of my national action network and some beyond that I'm looking at I won't call names but there's some that are very impressive and I tell them that they've got In their generation what works and they're gonna be tested and you're gonna be criticized and being a troublemaker you're going to have trouble because the fact that you're questioning speaking truth the power power is gonna answer you so make Absolutely committed. They wanna be there to do that. But keep your eye on the prize. Don't make my mistakes. You can study people like me and others. But study also where we fell short and correct them as we go. I know some health I imagine. You have You can keep going for longer I suppose if you don't mind me mentioning you've lost an enormous amount of weight and you post about drinking your kale juice everyday and you look great I've lost 176 CARDINAL lb over the last 4 years DATE I have a vegetarian eat one CARDINAL meal a day workout a 35 minutes Morning TIME and I'm in better shape now at 67 CARDINAL than I was at 37 DATE . Well, long long may I continue and do you work out listening to James Brown PERSON ? Of course, he was good. He was like my dad First ORDINAL time I went to London GPE James Brown PERSON brought me he played at the Hammersmith Odium FAC And I work with James Brown PERSON . He brought me to London GPE and I listened a lot of his music is up temple so it helps me when I'm on the elliptical or lifting weights That's what you're doing it too. At Reverend Al Sharps PERSON and thank you very much indeed for your your time, your recollections, and and some of your lessons. Thank you. God bless. Thank you so much for being with us. Until we meet again. Mask up. Stay safe and goodbye. Do you see that? 24 hours TIME a day. Bloomberg PERSON your global business authority. Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials People. You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with the best and best as you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have
On Bloomberg Wealth I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped I say Same thing today DATE about the climate revolution. Renewables. This is a level of uncertainty. Bloomberg PERSON television and radio Former President Trump PERSON strikes back. Wall St Week. I'm David Weston PERSON . This week DATE 's special contemporary Larry Summers PERSON of Harvard ORG on where the housing market is headed. Softness in the future with respect to housing. International finance on the risk and the opportunity of zombie companies. Money that's being spent to keep zombie companies afloat is money that could be more productively deployed elsewhere. It was a week DATE of signals. Some subtle and some not. China GPE sent an unmistakable signal that it's economy is slowing. Something that a 10 CARDINAL basis point rate cut doesn't seem likely to fix. She is confronting a number of both you know short term and long term challenges right now I probably the number one CARDINAL thing is the poor performance of the economy. Former President Trump PERSON kept up his attack on Republicans NORP who supported his impeachment though Congressman Liz Chaney PERSON of Wyoming said she wouldn't stop even after she was soundly beaten in her primary. Said since January 6 DATE that i will do whatever it takes to ensure Donald Trump PERSON is never again anywhere near the oval office and I mean it. And there was nothing subtle about the inflation signal we got out of Great Britain GPE coming in over 10% PERCENT and apparently headed even higher. I'd go to the UK GPE where you're seeing an explosive move higher in UK GPE guilt yields Tom PERSON and I don't think I'm overdoing it using that language Balancing GPE over 10 Over in place and expectations becoming entrenched. Beneficial noted that some parts of the economy notably housing. We're starting to slow as a result of higher interest rates. And if you wanted confirmation of just how big is those fed minutes were just take a look at the markets this week DATE with the S and P five CARDINAL Shooting up on Tuesday DATE only fall back down to earth and beyond on friday ending the week DATE down one. Two% at 42 28 DATE and the Nasdaq was even worse again climbing nicely early in the week DATE only to plunge on Friday DATE ending up down two CARDINAL . Six% GPE help no doubt by And then they got just under three% At 297 CARDINAL . To help us understand what the market may be trying to tell us welcome to Bob Prince PERSON he's co chief investment officer for Bridgewater Associates ORG and Ed Heyman PERSON chair of Evercore ISI and vice chair of Evercore Partners ORG so And let me start with you. You follow the economy and what's going on with the economy. We've talked about the markets. We've talked What's the economy telling us Well, you can't wait. It has two CARDINAL parts to it. Obviously, one CARDINAL part is what the real GDP is or auto sales, then there's inflation An inflation is by far the more important part right now but on the first ORDINAL part Economy is doing.
Your auto sales then there's inflation An inflation is by far the more important part right now but on the first ORDINAL part Economy is doing okay as you know we serve a companies And our retail survey dropped sharply this week DATE but still pretty elevated Housing is really getting hit But on balancing economy is doing okay I think it's probably going two CARDINAL or three% but headed to one% Recount I'm sorry bank loans came out this afternoon TIME and they're up 11% PERCENT now And retail sales this week DATE we're you know pretty decent On inflation which is much more important I I'm pretty convinced inflation is slowing Oil prices came down gasoline prices came down And In the weeds used car prices dropped about three% GPE and the latest month DATE And we survey retailers pricing power that's now plunging you've heard the stories about the inventory is being high and we have been tracking that for a long time it's now really coming down. But the most important part and we don't get my state on this or wages. And obviously the labor markets are very tight But they had from the conference board this week DATE A measure of CEO conference with almost a record low. And then another survey That showed 80% PERCENT of workers were concerned about policing their job. Go figure that. But we serve a employment agencies every week DATE And ask him among other things about wage pressure and that's now pretty clearly hooked down. So, I think you're beginning to see some moderation in wages on top of, you know, prices now cooling And the economy is calling So Bob PERSON adds season PERSON started to come down questions how fast is coming down but start to come down how do you see it and is it coming down enough and fast enough so the federal not Much further in red hikes It's definitely But the question is where is it settle out And doesn't settle out at the level that the Fed ORG expects it to and that the markets are discounting The markets are discounting two and a half DATE And you know, we're coming down from six CARDINAL So or higher on the core, right? So, but there are really two CARDINAL big imbalances in the economy right now that are need to be resolved through this tightening cycle and we're we're still in this tightening cycle It's it's too early to really see the effects. It hasn't been that long to see the effects and so chances are you're gonna get more that weakness as you as you go along. But there are there are two CARDINAL big imbalances in the economy right now that that they're gonna have to be resolved. One CARDINAL is the level of nominal spending in relation to the to the output capacity of labor Over the past year DATE , nominal spending is up 10% PERCENT . And incomes rub 10% PERCENT , and if incomes are up 10% PERCENT , that gets spent, and it, and you get more spending at 10% PERCENT . But labor can only produce goods at the rate of four%. You get a six% NORP inflation rate And that's the basic that's the first imbalance and that's the basic cause of the inflation that we have right now. It's really not the supply chain. It's just too much spending Which came from the monetization of government data and the fiscal stimulation. The second ORDINAL imbalance is the level of nominal spending in relation to bonyards. So nominal spending is even higher above bond yields than it is above output. It's, you know, seven, seven%, above bonus. So, it's a highest in 60 years DATE . So, if, if, if spending, if people's incomes are growing Well beyond bony yields it's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit and so that the the credit numbers it is referring to loans up 11 CARDINAL You know that's a backstop on the economy and spending so so it's it's the high level of spending an incoming relation to interest rates and and late
Backstop. The economy and spending. So, so it's it's the high level of spending an incoming relation to interest rates and and labor labor production And it's the availability of credit Sustain that. To bring about an equilibrium. Quickly there. It's one of the issues here. Where did you say that's the hardest get your arms around? Where are with wages and that wage price spiral? Because in fact, if we are gonna have continuation, people are gonna wanna make more money. They're gonna go to their bosses and say, you need to pay me more. Well CEOs now are really bearish so they're not gonna be happy if you have and see you on but your Bob PERSON and I think about the same way But money growth has been slowing for about 18 months DATE . We'll talk about that because it was growing gangbusters for a long time. Right. But you're saying it's turned around. So, in the conventional way, you had the checks you had the quantity of easing in low interest And so money growth got up to almost 30% PERCENT . Which is obviously extremely fast and that's why you have the strong number growth. Now, with figures I got this afternoon TIME on bank deposits money growth is well less than five% And so we've set up the mechanism for this novel growth which is way too fast To slow down but that's what has to happen and obviously, this is a really interesting thing. If it slows down, Come out of real growth or out of prices If you have your 10% PERCENT normal growth which everybody can understand I think Right now it's about one% ORG real and a nine% price right and if you go to say five% nominal Of what's the mix then? Right Should that fix the inflation problem or at least take us a long way before fixing it the Your total internet economy there your total sources of funds is your sources for spending and there are three CARDINAL sources there's money Credit ORG and there's income Right? And so when you get to tightening a monitor policy, they're contracting money and that's absolutely right The first ORDINAL effect of a contraction and money is on asset markets. Because if you think about the printing of money by the by the federing of the Central Bank ORG . They print the money and then they go buy bonds or they print the money and that money then goes into stocks. So that money most directly affects the financial markets Credit more goes in to spending right because you know you you take out an auto loan to buy a car you don't take out an auto loan to buy a bond and the fed ORG doesn't print money to buy a car they print money to buy financial assets so so what you have is a push pull The contraction and liquidity from the central bank is a drag on the financial markets While they're expansion of credit Support the spending And so you've got you got that work in both directions right now. Well, that's interesting to me at least credits going up. That sounds like it's good. It's gonna spur growth. But that makes Like that's actually gonna make me implementation worse. Does the fed ORG need the credit to come in? So, probably. So, in my view of it, which is a straight Milton Freeman PERSON Take of it of those three CARDINAL pieces that Bob PERSON point out the first ORDINAL one is where it starts. Is money growth. And I track global short rates. It's a global economy and they have a higher impact on the US GPE economy than fed funds. And they've been going up for about 18 months DATE . Same time that money growth has been slowing. So, I think we're pretty deep in this and we had a pretty good drop in the stock market to your point And and now inflation's coming down the markets are Beginning ORG to think that this is Introduction to the next chapter That the next peel of the onion. He's exactly right. So, the money is the first ORDINAL thing, right? The but what that and money is the first thing but it needs to get to the second ORDINAL thing and the third ORDINAL thing to have the permanent
Right. So, the money is the first ORDINAL thing, right? The but what that and money is the first thing but it needs to get to the second ORDINAL thing and the third ORDINAL thing to have the permanent effects, right? Which means Have to be in a tightening cycle for long enough for that to happen. Right? And we've been in a tightening cycle for how many weeks DATE ? If you look at 18 months DATE . Exactly. It had you have to be a long enough, right? And so, you know, as we look forward We think that there's there's gonna be it's too early to tell really how this plays out in terms of whether it's wheat growth or high inflation or which one but Probably gonna get some combination of wheat growth high inflation and rising interest rates. Right And all three CARDINAL of those are are rough on asset prices And the mix is gonna be determined mostly by how aggressively the fed ORG And other central banks tighten and and stay tight if they have to pay the price of a downturn. Turn next. So, what is really important for investors? So, it's too soon to tell. What are we doing in the meantime? Well, we're waiting for those answers. Bob Prince PERSON and Ed Kimon PERSON will be back with us for more Wall St Week after the break. Aid in the USA GPE but the sign on the CEO's door often says made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG such a Nadella IBM's ORG Arvin Krishna PERSON micron technology Sanjay Mejotra PERSON and that's Gap VM ORG ware and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? But no coastal To India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG . It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a New construction contracts faltered and while unemployment actually went down more significant was back to back monthly DATE declines and paying jobs. The bottom line seem to be that the economy was beginning to move forward but with many are lagging part And overall all at a pace Embarrass ORG the tortoise. That was Lewis Ruckheiser PERSON on Wall St wave back in August of 1991 DATE when the United States GPE had just come off of a rosely mild and short recession. The number one CARDINAL song if your murder was Brian Adams PERSON , everything I do, I do it for you and the top movie was terminated too judgment day. Still with us or Bob PERSON , Prince of Bridgewater, and Ed PERSON Hyman have ever core. So, it's Different world today Bob PERSON for example on the job situation we still have a pretty robust jobs economy but for everything we discussed before about the uncertainty of where we are on the tightening cycle what comes next what is that say to an investor Well, right. Now, we're in that in between stage right now, right? So, you, if you, if you go back just to not too many months
What is that say to an investor Well, right now, we're in that in between stage right now, right? So, you, if you, if you go back just to not too many months It it became evident that we had a self sustained inflation that there was gonna be a tight near monetary policy the markets price that in yields went up You got to take me in a policy it's still happening It's not over Marcus LOC got a little bit excited about the dip in some of the inflation. They started by down that yield. But bet we've already given up half CARDINAL of the yield rise that occurred in that actually means the fed ORG needs to do more than if the yields had stayed up where they were, right? Including equity. So, So we're still in this thing we're still in this tightening cycle And like I said there there are really there's gonna be a mixture of three CARDINAL things and you don't know what the mix is yet cuz it's too early to tell but you're gonna get some mixture of wheat growth, high inflation, and rising interest rates. The more the interest rates rise, the more it's the wheat growth, Less the interest rate rise the more it's the high inflation Text the foot off the break you're gonna that that inflation improvement's gonna go away and you're gonna you know they're gonna favor growth so you don't know which which how they're gonna play it quite yet. So what we try to do in this kind of environment is is maintain some balance, right? Diversification, obviously, don't Too heavily committed to anyone direction but also even within the equity market you know structure and equity portfolios that have AA cash flow and balance sheet base under them. So that if if you tightening is very aggressive that there's Strong enough balance sheet to hold that up to to sustain their their position in the markets or sustain a positive cash flow and I think that they companies that are you have a lot of debt in relation to enterprise value or vulnerable profit margins that sort of thing. You know are they are the type that are Vulnerable for that environment. An awful lot hinges on the fed ORG . Surprise, surprise. Jackson Hole GPE coming up next week DATE , okay? A lot of people are in paying attention to Jay Powell PERSON , what is the same? Remember, last year DATE at this event, he was talking about transitory still. That doesn't work so well this year DATE , right? So, how much guidance can the Fed ORG give us what exactly where they're heading? Just talking about. Well, it's hard to hard to know. I do think we're gonna get a financial crisis somewhere. Somewhere pretty soon It's always been part of the of the tightening cycle But like you point out David, yo, last year DATE , it was really about transitory. He had five CARDINAL Went through five CARDINAL different things that were proved transitory And I I personally think the fit is now on the other side of the wrong foot. They're doing the entrenched You know, a year ago DATE , I thought Bonnie PERSON is a good a five% and fed funds go to five% and I'm not quite sure what's happened but your money growth gets slow dramatically And combine prices here and come down dramatically and now I'm seeing pricing power coming down and so I think we've made a lot more progress on inflation than I expected and and that's why the market was going up until today DATE but that's that's If inflation keeps coming down Then the market is gonna appreciate that. So, one thing I don't understand, Bob PERSON , we heard why Ed PERSON thinks the feds job maybe he's got a bit easier actually with some of the things that have happened But financial conditions actually have not tightened. Actually, if anything, do that in someone looser. That makes the fed ORG job harder, doesn't it? Literally the first quarter DATE that markets were doing the feds job entirely. Yeah. And then the Fed ORG joined in and once the Fed ORG joined in and the market saw some, you know, positive signs of inflation. You know, they actually pull back and so, bonus came back down, equity yields, you know Came back down And so You know that as you said about half CARDINAL of the tightening that the markets were applying has been retracted. If if yields had stayed where they were It would be that much less that the fed ORG needs to do but the fact that the yields have actually dropped some and can kinda give it back some of the work that they were doing is that much more that the fed ORG needs to do. And so I think you know it's
But the fact that the yields have actually dropped some and can kinda give him back some of the work that they were doing is that much more that the Fed ORG needs to do. And so I think you know it's Ed PERSON referred to last that you know you you raised it and then you know we About last year's DATE Jackson Holstein ORG but They were clearly wrong about transitory inflation if if you actually look at the indicators that they follow and they tend to be lagging indicators I haven't heard yet an explanation about how they think inflation, why they think there is an inflation, why they think that that was wrong, and I think that that causes some cause you to question How well this this process is gonna be manage is gonna be very tricky. Powerful point I think does a fed ORG need to explain to us what went wrong and why they're not gonna do a mistake again for us to really believe in this time. Oh, be helpful. But you know, from my vanished As you can see What they missed was that fiscal stimulus quantitative easing led to a 30% PERCENT increase in the money supply and that did it and if you look back at that Jackson Hall FAC they completely missed that. Now money growth is plunging and commit prices are coming down. All sorts of signs that are early signs and so the job's not Or by any means But there's progress If you look back like the 70s when inflation peaked The stock market started to respond to that. When you had a very high inflation period, like we have now. Do you agree with Ed PERSON that in all I could have some sort of financial crisis? That's what happening happens Serious tightening cycles. Odds are pretty good yeah Yeah I mean we haven't had enough tightening yet to really have that Odds are good. Yeah. I mean, we haven't had the downturn yet. If there's gonna be a downturn, it hasn't happened yet. It's gonna be hard to bring inflation down. Are you gonna bring nominal spending down from 10% PERCENT to five% Without a significant Credit you need to slow credit growth by about half CARDINAL money growth is slowed but you need to slow credit growth in half CARDINAL but it's still rising you're gonna have to you're gonna have to hold interest rates up enough and that's when thing that's when bad things happen I have to tell you this is not a bad thing it's Free to have the two CARDINAL of you here in Walsh Review ORG really thank you so much that is Ed PERSON Hyman I've ever record and Bob Prince PERSON of Bridgewater coming up we'll take a look at what's coming up next week DATE on global Wall St that's next on Wall St on Bloomberg GPE . We're going to step by step electrify everything and what does that mean? This is Wall St Week. I'm David Weston PERSON . Let's take a look Coming up next week DATE on Global Wall St WORK_OF_ART starting with Julia Sally PERSON in Singapore GPE . Thanks David after unexpected cuts to the medium term lending facility in China GPE we'll be looking to see if the banks follow suit with a cut in the loan prime rate also on the Slater Intro PERSON
Thanks David after unexpected cuts to the medium term lending facility in China GPE we'll be looking to see if the banks follow suit with a cut in the loan prime rate also on the Slater PERSON interest rate decisions from Central Banks ORG in South Korea GPE and Indonesia GPE inflation figures from Singapore GPE and Hong Kong GPE trade data Earnings across the region include Qantas GPE , Patro GPE , China GPE , and food delivery, giant meat one, Bloomberg PERSON , Intelligence ORG forecast, Chinese NORP companies, maybe set to report their worst earnings 2 years DATE . In Europe LOC for the coming week DATE will be the energy crisis in Europe LOC and we have a lot of developments in the week DATE prior you had the wine dropping to levels that made it untenable to have shipments across it you had record high energy prices in France GPE and Germany GPE you also had Matt Gaps PERSON prices reaching new records as well so We head into this week DATE the question is going to be how this impact industry how would impact individuals will there be more demand rationing and demand destruction we've already seen some of it with different industry having to shut down power plants but how much worse can it get and what will be the impact on the economy Big weekend economics we have the Jackson GPE wholesome posium coming up and I think our Bloomberg GPE economics team really focused to hear some hawkish comments from chairman Jay Powell PERSON reassuring the market there was no pivot and that we are still a go in September DATE for 50 or CARDINAL 75 CARDINAL basis points away from economics How do they sort of continue to grow in the face of further reopening trade maybe less to demand for that product finally peloton we've heard a lot from this company about Some of the bikes at home, a lot of cost cutting initiatives, all the help sort of get that company back on track. That too will be a key focus for us next week DATE . Thanks to Julia Sally PERSON , Danny Burger PERSON , and Taylor Riggs PERSON . Well some of those who maybe caught are those so called zombie companies who've loaded up on debt when it was cheap. International finance. That's next on Wall St Week on Bloomberg PERSON . When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 and 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce about three% of all the world is huge two CARDINAL I'm from shipping. Sent me not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement to help reduce the emissions from these well stocked maritime behemoths?
To help reduce the emissions from these well stocked maritime behemoths. BSO Now your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed archival concerts visit PSO ORG . Org slash now with a music plays on BSO season sponsor Bank of America ORG It was nice while it lasted all that support from the fed ORG from oh interest rates. Enabled All of which allowed companies to borrow as much as they wanted which was worrying to rust costric of black rock as much as 4 years ago PERCENT . The 800 CARDINAL lb gorilla which eventually we're all gonna have to question is whether or not this build up in corporate leverage which we've seen over the past 3 or 4 years DATE is that sustainable But now those happy days DATE are over as the Fed ORG has reversed course and says it will keep raising rates until the inflation dragon is slain the idea that we are going to start cutting rates early next year DATE when inflation is very likely going to be well well in excess of our target I just think it's not realistic where Leave all those companies who've borrowed so much. Well, at least some of them are so called zombies. No not those zombies companies that don't generate enough cash to pay their debt and that leads economists like Neuro Robine ORG to say we're going to see some of them fail which may just be what we needed to get to the other side. Your tons of firms that were highly Now that the weather tightened As inflation is higher the zombies are gonna collapse. And to take a series of strange and exotic world of zombie companies who are gonna have Sonia Gibbs PERSON she's managing director and headed sustainable finance at the Institute of International Finance so Sonia ORG thank you so much for joining us on Wall St Week let me start with those Zombie GPE company and how many of them are there out there First ORDINAL of all, to take a step back. What you need to think about is that over the past 10 or 15 years DATE , global debt levels have skyrocketed. We've had very low interest rates and for example, non financial corporate debt around the world is now close to 100% PERCENT of GDP. And that's more than double what it was Decade ago so that's a very worrying backdrop And so what we mean by zombie companies is a company that essentially has to borrow to keep going. They are highly leveraged. They're not growing very fast. They're revenues are not up to par. And at the moment they face a very difficult situation you've got higher input cost so your commodity prices are higher wages are rising at the same time you don't earn enough revenue to cover all of these higher costs and your debt service so if you have a ratio of reven To interest costs that's one CARDINAL or less if you can barely cover your debt service cost we call you a zombie company and it's a very good name it's very evocative For how many amuse is difficult to calculate right because for a lot of firms that for example aren't publicly listed the information might be less available it might be smaller non-public companies The federal reserve estimates that between five and CARDINAL 10% PERCENT of US GPE firms fall into this category It's also important to remember that this is not a static world. It's not once a zombie, always a zombie. Conditions change and in fact, becoming a zombie company is a little bit cyclical.
Static world. It's not once a zombie always a zombie. Conditions change and in fact becoming a zombie company is a little bit cyclical. In the sense that when times are good maybe interest rates are low. Growth is high. Maybe you're not a zombie. But then, you know, bad things happen. Pandemics happen. Shocks happen. Interest rates go up And a company that was formerly doing reasonably well Might suddenly fall into the zombie category. So so you mentioned the overall debt load it's true certainly in the United States GPE and not just in the United States GPE and part because interest rates are so low there's some very very successful healthy companies that loaded up on debt cuz it was so cheap but and whenever we've talked about this risk in the last few years DATE I said don't worry as long as interest rates are low we're fine it looks like those days maybe on their way We're gonna have higher interest rates. So, what kind of pressure is that put on these zombie companies? Well, I think it's a good analogy, right? It's all fine until it's not. And so you've had AA kind of a confluence of factors that have hit pretty much at the same time. You had a pandemic which hit growth. You had commodity price shock. You have writing inflation. You have Interest rates and you also have firms who's who's business models. For example, have been entirely changed by the pandemic. I mean, amongst the list of zombie companies you might find a company like WeWork PERSON , you know, a company that has been very successful but at the same time, the pandemic has changed a lot of things for that for that company Carnival ORG cruise lines is another good example of a type of company who's now in the zombie category or some of the meme stocks, you know, AMC ORG , your game stop. So, these are really household names and I think that the difficulty is at a point in time when you've got wages rising, when you have higher input costs. These firms Be able to borrow as much as they need to borrow to keep afloat. Tend to find zombie companies concentrate in certain sectors or in certain size corporations. So, I think it Percentage of zombie firms are probably in manufacturing and in retail and retail of courses in industry that's undergoing secular change over the long term as we move to sort of more online no less brick and mortar think there are there are underlying structural issues there and in that In any case but I think some of the companies that are hardest hit tend to be smaller firms and if you think about a small company there's sort of inherently face greater credit risks than some of the larger better established companies that have long standing histories and track records in borrowing their you know famili To investors smaller companies have a harder time accessing funds especially when when borrowing conditions are are difficult and with some of these companies having fallen on hard times during the pandemic You know there are estimates that suggested in some cases as much as 25 30% PERCENT of the small cap companies especially if you include unlisted companies could be falling into this sort of zombie trap I wonder say about the larger effects on the economy. Obviously, we don't wish ill for any corporation but there's gonna be a lot of stress put on a lot of the companies you're describing right now. Ain't so far is that all gets sorted out to use a eufacium perhaps. Is there some benefit for the economy and redeploying the capital they represent into things that might be more productive than Enterprises. Think about this in a short term and a long term context. So in this short term It is very helpful for the economy to keep these companies afloat and you could think of the example of Japan GPE here which is spent over 800 1 billion US dollars MONEY since the pandemic hit to support its companies so you avoid bankruptcy, you keep people employed, you keep these companies float, but there Longer term cost to be paid for that because when you think about it Zombie GPE companies afloat is money that could be more productively deployed elsewhere. You could put it into capital spending. You could put it into infrastructure. You could put it in a new industry, it's new technology is maybe in the ESG world or or green technology that can really deliver A boost to productivity and growth. So it's kind of a foregone opportunity in that sense. At the same time for the reason you describe.
That can really deliver a boost to productivity and growth. So it's kind of a foregone opportunity in that sense. At the same time for the reason you describe and the example of Japan GPE is a good one. It strikes me. There are political consequences of letting zombie companies go belly up. You know that the politics of these things are are always difficult, right? In one CARDINAL of the the conclusions that you can come to is that if you have a high proportion of of zombie companies. If you have companies that you're worried about keeping afloat. There's political pressure to keep that going. The more that borrowing cost rise, the more that interest rate rise, the harder time these companies will have keeping going. So if you're in a world where inflation is rising and you have central banks having to make a very difficult balance Controlling inflation and supporting growth which can involve supporting some of these less profitable companies. You know, it's a it's a it's a rock and a hard place. You know, where do where do you draw the line? If in fact the fed ORG could hippie held responsible for this many companies and maybe it's not within tent but it's certainly was a consequence of extraordinary low interest rates for a long time. Oh, I think ultimately, it has arbitraries of the price of money. You could hold the fed ORG responsible for everything really but certainly, it was an inadvertent consequence Of low interest rates. So I mean if you think of the the many many years when we had low and in some countries even negative interest rates there were warnings sounded all the time. There are risks to financial stability. There are risks to long term growth. It's going to stoke inflation. It's going to distort financial markets. Is dis Asset valuations And in fact you can think of zombie companies as a type of distorted asset valuation right because a company that cannot generate enough revenue to support its debt service and it's running costs arguably is trading at an inflated valuation because it can continue to borrow at low rates so Sort PERSON of put it on the backs of central banks but it's it's certainly an inadvertent consequence of something that had to be done to keep growth going during the the after the financial crisis. International finance pleasure to be here. Larry Summers PERSON of Harvard ORG . This is Wall St Week on Bloomberg PERSON . Crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. For something as universally important to human life Mysteries surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harness to further expand our understanding It's easy to memorize things that makes you smart if you can When and how and why to use that information And that's what you bring figures out while you're sleeping.
This is Walsh St. I'm David Weston PERSON . We're gonna wrap up the week DATE . Once again, with our special contributor, Larry Summers PERSON of Harvard ORG . Larry PERSON , thanks so much for being back with us. So, let's start with those fed minutes that everybody was waiting for eagerly and they came The markets didn't know quite what to do with them what did you make out of those minutes They confirmed what I suspected Which was that the fed ORG doesn't know where it is That the world is very ambiguous at this point And Of a meeting or a very poor way to convey Collective Look PERSON the fed ORG has a fundamental problem About which it is not yet willing to be realistic And that is that it is exceedingly unlikely That inflation can be brought down to target levels Without a substantial increase in unemployment they To be very concerned about unemployment and about inflation and the reality is that it's probably not so realistic to think that they're gonna get All the way down And they don't wanna acknowledge that and that forces a certain confusion Into all of their Statements I can sympathize and understand why they don't want to acknowledge that part of the problem is they've taken on an excessive obligation To communicate so I think there are a very very difficult situation I don't know to what extent they're gonna choose to take the pain that is ahead Choose to take it on the That To be seen I suspect in some ultimate sense they don't really know either which way it's going to go Gotta worry them. That Financial conditions are now Really looser than they were when the fed ORG last met And Middle of a tightening cycle Conditions or substantial loosening That has to make a central bank. Nervous. David there's one CARDINAL other aspect of this situation that I think is very important and under recognized What's happening with Russia GPE and Ukraine GPE what's happening with droughts all of it they don't really fully internalize that oil prices and wheat prices have both come down substantially at our predic Substantially in the future. Concepts of core inflation When headline inflation was higher than core inflation Can't stop doing that when headline inflation is lower Then I inflation With respect to core inflation Median or trimmed mean Measures And so I think we've still got a substantial Inflation challenge ahead of us. One of the things that Fed ORG emphasize in the minutes. Besides really being concerned about inflation expectations. On the other side of that was a softening housing market. Something you referred to last week DATE on this program. Give us your take of the housing market. Some people say, we're in a housing recession.
Concerned about inflation expectations. On the other side of that was a softening housing market. Something you referred to last week DATE on this program. Give us your ticket the housing market. Some people say we're in a housing recession right now. So I think you have to distinguish Movers NORP from stairs or to put a differently you have to Look at you have to think about what the right way to look at rents is. Here's what's true What's true is that last year People who were signing new leases We're paying 15 or 20% PERCENT more than they had a year ago DATE . Nothing like that Fatty into the consumer price index or the feds preferred measures a PCA ORG index All the fed through Was the small fraction of people who saw their rents change And a constant rant for everybody else. What that means is that down the road like now You're seeing inflation Leases are coming up are Substantial GPE increases and so we're gonna see significant housing price inflation in the measures of inflation that are used For another 6 to 9 months DATE that's a different thing than what builders are responding to builders aren't responding to that builders are responding to what they think the price of houses will be a year from now DATE and that come down and so A slowing in Building GPE and that's what happens when interest rates go when interest rates go up in some ways it makes sense if we're gonna have a decline and economic activity It's better to have a decline in something where we've already got a huge stock of it and it's only the new flow that's being affected Van in Something that we need to consume A continuous basis Doesn't have any duration to it But I do think we're Chords Respect the housing and I'm sure there'll be differential impacts in different parts of the country as I say my best guess is that we will have a meaningful recession In the next 2 years DATE and if so, I think there's considerably more pain with respect to housing ahead. Larry PERSON , when you talk about softness and slong, we certainly saw that in numbers coming out of China GPE at the beginning of this week DATE . And I wonder what you make of the Chinese NORP problems as we know there are three CARDINAL But on the other hand is it possible that we'll give a little at least a little relief to the fed ORG here on slowing inflation Probably well Goes back to the issue we discussed a few minutes ago David TIME about oil prices and grain prices Main ORG impact of Chinese NORP slowing is likely to be How much weight those should be given as we think about our inflation rate And this country but it probably is a positive on inflation The larger questions How we see China GPE in the future and how China GPE will be responding to these Increasingly profound events in China GPE It was taken as almost axiamatic 6 months or a year ago DATE that at some point the Chinese NORP economy would surpass the American NORP economy in terms of total GDP at market exchange.
At some point the Chinese NORP economy would surpass the American NORP economy in terms of total GDP at market exchange rates that's now much less clear than it previously was and I think you're seeing all kinds of challenge Huge financial overhang there's the where the growth is going to come from there's the growing communist party involvement in a wider range of enterprises there's the demo Traffic I have been saying for some time that I think people are gonna look back at some of the economic forecasts about China GPE in 2020 DATE in the same way they looked back Forecast PERSON for Russia GPE that were made in 1960 DATE or for Japan GPE that were made in 1990 DATE . Last one here toward the end of the week DATE turkey central bank made a move to try to combat inflation by you will believe this cutting the interest rate from 14 to 13% PERCENT This of course is part of President Erdogan PERSON 's theory of interest rates President Erdogan PERSON is the world's first ORDINAL He is putting modern monetary theory into effect. So far it hasn't worked very well For him For the Turkish NORP people I don't think that's going to turn around And I hope that the misguided accolades of modern monetary theory in the United States GPE are watching. Okay Laurie thank you so very much that's Larry Summers PERSON of Harvard ORG are very special in trader here on Wall St week. Coming up, we all know getting older makes us slower and grayer but can it also make us richer? That's next on Wall St Week on Bloomberg PERSON . No one covers the world like Bloomberg PERSON . Seven% in the coming months DATE do you see that coming Taiwan GPE and China GPE . To come from. The moment news breaks 24 hours TIME a day. Stocked early enough all these precious materials you were just mentioning and we were on the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need Finally, one CARDINAL more thought. It's one CARDINAL thing that we all have to do None of us wants to think about it And sometimes seems like some of the oldest among us may be the deepest in denial where there is rock musicians like Mick Still performing live on stage at the age of 79 DATE or sir Paul McCartney PERSON who's still going strong way past that age of 64 he wants worried about or are political leaders in or nearing their 80s DATE like President Biden PERSON and Mitch Carnell PERSON and Nancy Pelosi PERSON who snapped back at a reporter 10 years ago DATE when asked a question. College five CARDINAL at least say that you're just gonna stay on
No. Hey portal McDonald. And who can forget President Ronald Reagan PERSON who in 1984 DATE provoke the age old or should I say old age question after Through his previous debate with Only come back with this zinger. I will not make age an issue of this campaign. I am not going to exploit for political purposes. My opponents, youth, and inexperience. The world of business and finance is an entirely immune from this but by Warren Buffett PERSON who at 91 CARDINAL shows no signs of stepping down and told our own David Rubenstein PERSON his goal is to keep Quite like to be the oldest man that ever lived actually And who knows maybe we don't really just get older. We get better. For those who are hoping that that may just be true. We now have a concrete, provable example. Coming from the world of golf. We're adjourning tour professional who'd struggle for years DATE . Suddenly became Simply by turning 50 CARDINAL pushing him into Older player PGA tour champions league to be sure Stephen Alka PERSON from New Zealand GPE happened to be at the very top of his $ Three MONEY . 5 million CARDINAL which is more than he made in all the rest of his career put together and if he keeps sinking extra long putts like Did to win the Boeing ORG Classic Bloomberg PRODUCT see you next week DATE . Ken Griffin PERSON is moving both sit it out and sit it all security is to Miami GPE this group was broken by Bloomberg PERSON 's Amanda ORG A lot of the satellites have proposition systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver their machines Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If you're satellites gonna come dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem now. The risk of Just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up
This is my kitchen table and it's also my filing system. But we're much of the past three decades DATE I've been an investor The highest quality of mankind I've often thought was private equity. Hey Make it to the top. No due diligence For the past several decades DATE , Andrew Livers PERSON has been one of the most important figures in American NORP business. For 14 years DATE , he served as a CEO of Dall transforming that company from a chemical manufacturing company to one CARDINAL led by science and innovation Currently Andrew Livers PERSON is involved in a number of business endeavors including serving as chairman of Lucid Motors ORG in EB GPE startup company he also serves as an adviser the Saudi NORP sovereign wealth fund I sat Andrew recently and Lucid showroom in New York GPE to discuss his accomplishments and his future ambitions. So I've been reviewed many business people on the show but very rarely about interviewing anybody who has any interest in so many different continents so you're doing something in Saudi Arabia GPE we'll talk about that you're involved in things in Europe LOC In Australia GPE , your native Australia GPE , you are now the head of the Olympic committee. Is that right for the next Olympics EVENT in Australia GPE ? It's a 2032 Brisbane Olympics. They won the bid last year DATE and on the president of that to put it in place and 2032 as you know is 10 years DATE so that's an exciting project. And the United States GPE you were for quite Sometime more than a decade DATE the CEO of Dow Dow chemical initially that were called down and you merge it with Dupant before you step down. Is that right? Correct? Yeah. So, let's go back to your beginning. You grow up in Australia GPE . How did you manage to get to Dao and to the United States GPE ? Yeah the the gene that got me to have Wonderlust was because I grew up in a little multicultural town in Northern Australia LOC called Darwin PERSON . Lots of Asians NORP , lots of indigenous people, first Nations people, lots of immigrants like Greeks PERSON that came from these very poor areas. So, I I had this Understand PERSON the places north of us Indonesia GPE , China GPE , Asian NORP , and as a whole. The American NORP You know, if you like knowledge that I got was listening over the radio to, you know, things like the JFK, Assassination, and Man on the Moon PERSON , and you know, I we didn't have TV where I grew up. So, I was just fascinated by America GPE and what it offered the world. So, that combination Got me recruited out of campus I didn't join a British NORP company I didn't join the Australian NORP company the companies that came by that were American NORP were the ones that I was intrigued by and now had the best recruiting line of them all for 21 year old DATE join us and we'll show you the world so that combination where What I was exposed to and the Dow recruiting line. Family a wealthy family Blue colors we would call them immigrants my father we lost our grandparents he he lost his parents and so he raised his two CARDINAL younger brothers when he was 12 DATE he became an apprentice and a carpenter and he and his two CARDINAL brothers A small fledging building business in Darwin PERSON and we I was the first ORDINAL to go to university in my family. Do you graduate from university and go to work a dowel and in Hong Kong GPE initially? Would they send me down to a very cold part of Australia GPE called Melbourne GPE which haven't had a lot of great people. I got cold redefined when I went to But I thought it was cold at the time. They went I went there for 6 months DATE and there was an accident in a factory in Hong Kong GPE . And they sent four CARDINAL Australian NORP engineers. I was one of them to go work to actually help the locals adjust to operating a complex chemical environment. So now is very famous chemical company was for quite some time. And how do you go from Hong Kong GPE Australian NORP accent to an American NORP company in the middle of the
Very famous chemical company was required sometime How do you go from Hong Kong GPE Australian NORP accent to an American NORP company in the middle of the United States GPE . The visionaries that ran down the 60s DATE that led to my recruitment in the 70s DATE . Had this view that to go international yet to high local. Well before it was Vogue and they went around the world looking for people who were willing to go to these far-flung Hong Kong GPE at that time wasn't the sophisticated city that it is today Basically, you know, what they did was they localized and grew talent locally but kept a playbook. So, I was spotted early by the then dial leaders and they started to move me around to test me in different places. Mostly in Asia LOC and then Eventually to the US GPE . Engineer, what was your skill set? Chemical engineering which you know, when I look at today DATE 's world and I think about chemical engineering, the word chemical sort of sort of puts you into a different place with a thought. It's really problem solving engineering. And Learn PERSON how to be a problem solver by learning chemical engineering. So, you've eventually moved to Dal headquarters where is it's in Michigan GPE , right? But what what small city is it? Little town called Midland GPE with a founder, founder of the company, and we're still headquartered there. Alright, so you move there and and for how many years were you the CEO? So, just shy a 15 CARDINAL of The last couple were in the merged entity which my successor then we've set up the demojo and we can talk about that if you like but certainly the 15 years DATE included the last two DATE as executive chairman of the Dow Dupont entity but I let us into the merger And the restaurant are behind that. Was a 10 year DATE remake. We put a strategy in place in oh five DATE . And we execute it over 10 years DATE to move us back to an innovation centric company. We had lost our way. We had commoditized. We had restaurant on the walls all over our previous inventions. And by the time the 90s and the ohs came around we were really out our innovation Chest was bare. Our cupboard was bare. So we reconstitute on innovation in the company by changing the portfolio. So you took down chemical. You renamed it down at one CARDINAL point. Took the chemical out of it. And then you merged it with dupont. Yeah. And then you split the company in the three CARDINAL different Funny. Is that right? Yeah, so two CARDINAL amazing American NORP iconic companies, 300 CARDINAL so, so years of corporate history between them. Dupont ORG found it on explosives, Dow ORG found it on, you know, chlorine. You think about the corporate history in both of those, the portfolios they both had assembled by the We hit this century DATE were across a range of different applications and there were many things to many markets. So, what the premise of the case was working with their brain on the dump side? Was we put the two CARDINAL together and separate them into more pure please? So, Dao, materials, the ag ORG company, agricultur Products and of course the Dupont ORG company the new DuPont ORG company on specialty chemicals and plastics CEO number of years ago DATE did your wife say when you're done being the CEO is the time you spend more time with me and stay at home and now you're running around the world so was she disappointed or she happy to have you out of the house still She expect me to No. I should knew me but the story on the Olympics EVENT is a classic. That call came, I don't know, 2 months ago DATE , on a Saturday DATE , we're in Sydney GPE . Now, living room. I got a call from the Premier of the State of Queensland ORG saying, would like to offer you the presidency of the Olympics EVENT . I said, Excuse me. And and you know, I was aware of Brisbane at one. So, I didn't embarrass myself. But I said, can I get back to you? Can you tell me a little more, get, and I'll get back to you. Yeah, but we wanna announce it on Monday DATE . So, Stop. Okay. So, anyway, my wife said, who's that? And I told her and she. And she said, look to me in the face. She said, you've got to take it. And I said, you know how busy I am, right? And she said, I know how busy you are but you've gotta take it cuz you're the right person to get it done And if it means you're gonna drop some things, drop some things, but take it. That's the type of partner I have.
There's more activity in the fusion world than ever and not just in government research labs. There's also an emerging private fusion industry that's attracted billions of dollars MONEY in capital in recent years DATE . Governments and private investors alike realize that we've got to find a solution that's gonna allow us to get to net oh targets. This is one of the hardest but most rewarding problems that that humanity could work on. Ultimately, we all want the same thing. We want someone to put electricity on the grid from a fusion power station as quickly as possible Frankly the scale of the challenge 3000 CARDINAL gigawatts a fossil fuel to replace there's not many things they can do that in fact there may only be fusion that can really do that. And while many in the scientific community predict fusion power will take decades DATE some in the private fusion space believe we'll get there Just a few years DATE as soon as the 2030 DATE 's How did you wind up to be the chairman of all of a bill company when you hadn't really been in that industry? I think the manufacturing thermatic that I had throughout my whole career wrote a book on it making it America GPE Made me an attractive candidate to a whole host of different companies around the world whether it be bored or advisory certainly the lucid experience was something I didn't predict but it came really through my association with the kingdom of Saudi Arabia GPE who were the major investor in The precise little Lucid. I got asked by the PAF ORG to come in and help Rebuild PERSON the company and create what you see here which is a full-fledged EB company. First ORDINAL Greenfield PERSON site EV ORG 's tester did a modified site, right? So, we build a Greenfield PERSON site and it's up and running right now. So, manufacturing was a big piece of my expertise that was attractive to joining the Lucid experience So Saudi NORP Aramco is now the most valuable company in the world. Is that right? Yes. And you're involved in is that you're on the board of it. Yes. And you see energy prices or oil prices coming down anytime in the near future? Do you think they're gonna be over $100 MONEY per hour for quite some time? Look commodity markets as Must know well known your story career David impossible to give you an answer other than you know the most important dynamic of the mall is climate change and see a tour emissions and how can we make And gas for that matter cold before but I think Cole PRODUCT is destined to be faced out but all in gas and our addiction to it and the transition that is needed to get COtwo ORG out of the air. We'll eventually dampen demand EVs which I'm sure we'll talk about soon. Evies alone, electrification of the Transportation ORG market. We'll see a dampening of demand but it's impossible to predict in a short term. How do you predict a war Ukraine GPE and the effect that it had on commodity prices. So, we do, we will go through periods of zigzag line if you like a pricing. For some years DATE to come. And I can't tell you whether it's gonna be high or low, no one can. But Saddy Arabia GPE which has a normal amount of oil, seems to be interested Finding ways to do things that are not related to oil and electric vehicles is one of them I guess that's right. Yeah, did this vacation division 2030 DATE that was put in place and you'll you'll quite familia By his highness crown prince has has a big piece of it to diversify away from oil and to go into other businesses and other activities that might be related so chemicals and plastics and downstream creating a circular carbon economy hydrogen and going to the green economy Renewal PERSON was his gentle wind. Nuclear power. This diversification on the energy mix is a big part of the vision 2030 plan. And that's what Arenko LOC and others in the kinderma driving. Let's talk about Lucid for Mum. You're the chairman of Lucid. Yes. And it's an electric vehicle Ready? Tell me
Plan and that's what Aramco and others in the kingdom are driving. Let's talk about Lucid for mama. You're the chairman of Lucid. Yes. And it's an electric vehicle company. Tesla seems to be so far ahead of everybody else. How do you compete with Tessa PERSON when they have such a large share of that market? This is a technology business. So, in your earlier question about how did I get involved? I said manufacturing. Well, a manufacturing is an interesting word being useful a couple 100 years DATE in humanity as we obviously went up the technology ladder. Humans are inventive and innovative because of technology advantages. Lucid offers a technology Advantage PRODUCT and beats everyone right now and has been recognized for it. Firstly ORDINAL , is the distance we can travel without needing, you know, to charge and that's over 500 CARDINAL mi EPA ORG certified. Second ORDINAL is our charging time. We can actually get a recharge of up to 300 CARDINAL mi in 22 minutes TIME . That's technology. Those two CARDINAL topics are all Technology the car and it's Is aesthetically beautiful I've fantastically it's absolutely totally a luxury car and clearly an experience and a software that supports it is also technology so what we've been doing at Lucid is homing in on the technology side of differentiation is there room for a Tesla or a loosen and a bunch of others of course I mean we are going to see EV ORG 's as the primary motor transportation in our lifetime. Now where is Lucid manufacturer's cars? Casagranda ORG , Arizona GPE . Just outside of Phoenix GPE . If I wanted to go buy one, where do I go buy one? Buy them online or you come to showroom like this and they cost about $5000 MONEY a piece or something like that. You are in the right place to buy one. We can maybe hopefully sell what you want as you leave. The we have a retail strategy. We go directly retail and service centers around the We're opening up retail centers as we speak in in Europe LOC but we have them in the United States GPE and this is an example of one CARDINAL and the price point is not $ 5000 MONEY . We have a price point at the high-end lux Our competition is Porsche ORG BMW ORG out here trying to be an electric vehicle for high end start at this point in time that's our strategy we've got the dream the Grand Touring we've got the the air and then the SUV the gravity these price points are north of $100 thousand MONEY with the the dream at 161 CARDINAL 70 1000. But clearly that's a luxury and the mass market end where gentle motors and forward and others are in a pointing themselves is obviously the big opportunity. We'll eventually get there but we've made no announcements. And you have one of these cars I do. I was an early buyer at full price. I felt it was important. I demonstrate my support for the team. I'll never forget the the amazing drive I had in. It's I have it down in Florida GPE where where my residences I drove it drove to Palm Beach GPE and drove around there and every time I stopped I had people looking at me And I knew it wasn't me. It was clearly the car. And then I parked it. And I will kid you not. It was like a mob scene around me. It was one of the I think it was the second ORDINAL car in Florida GPE . So clearly had not been seen. I valet parked it at this hotel where I was having dinner. And and the the gentleman wanted to compete with the other gentle Valet ORG park that can I drive a car drive a message you know Maybe I should park it myself and so it's it's it's an attractive car and it really drives supremely well. Let's talk about the roads on which these cars drive. So, you've been advised with the President's United States GPE on infrastructure and manufacturing but on infrastructure, you've been involved with the legislation that was passed not long ago. The United States GPE infrastructure so terrible compared to so many other a wealthy countries. You know I have been around US GPE politics like you for a couple of decades DATE and have served a variety of presidents from the different parties and and the attitude in the United States GPE is obviously to keep taxes low and keep the public spend under control and the word control is interesting but that Forward thinking in terms of planning and therefore a short termism around our fiscal policies has hurt us I mean in essence you infrastructure is a long term And and to get a long term return putting it into private hands is one CARDINAL way
Some around our fiscal policies has hurt us. I mean in essence you infrastructure is a long term return. And and to get a long term return putting it into private hands is one way of doing it. But really the public side of life has to be willing to brew the forward spend. The forward spend on airports and roads and EV Charging ORG stations has to come from the public domain. Now, raising taxes To spend money on infrastructure You've gotta trust the people doing the spending. And I think the public private model is the way to go there. Which is actually create an infrastructure bank. That there's US GPE public company owned or public sector owned that has private sector matching funds. I think that sort of breakthrough has yet to occur in the United States GPE . So where we go Text and spend which unfortunately one side of the old disagrees with. Manufacturing is something United States GPE has thought by many people not to be as good at as we were or do you 50 years ago DATE is that's fair there's a perception That manufacturing is yesterday DATE 's sector and that is so erroneous because pretty much everything While Tesla ORG 's in the lake make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Instead of burning oil and gas to give us the energy and electricity we need we wanna do 100% PERCENT clean energy Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all buildings and if we do it All buildings will reduce 30% PERCENT of US GPE greenhouse gas emission. Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. But they also want low and stable inflation. We have to give them both. Now your first ORDINAL book was about manufacturing Manufacturing is something United States GPE has thought by many people not to be as good at as we were 40, 50 years ago DATE . Is that fair or not that that's a perception at least. Yes, that's fair. And I addressed it in the book because we think smokestacks and we think of rivers on fire when we use the word branding is everything and today everything is branded in a heartbeat Through Instagram and you name it and as a result of that there's a perception that matter factoring is yesterday DATE 's sector and that is so erroneous because pretty much everything in modern life is made I used to say a dow. We've only got three CARDINAL functions. Okay? To invent, to make, and to sell. The rest is overhead. And the make part Actually very connected to the invent part China GPE was brilliant in its strategy through the 30 years DATE of Denzel Ping PERSON It attracted assembly And then insisted On R and D there were only 10 R and D labs foreign owned in China GPE in 1990 2010 DATE there were 40 1000 R and D lapse. Why? Because they wanted to know.
R and D labs far known in China GPE in 1990 DATE by 2010 DATE there were 40 1000 CARDINAL for an R and D labs Because they wanted to know not just how to make an assemble. They wanted to invent all the way back to the material to the actual the battery, to the products, and to do that, they needed R and D. NORP Manufacturing RND lived together Okay they live together through prototyping and scaling And the topics of invention and innovation are in manufacturing cuz you actually learn what you make and then when you digitize you learn more digitize the manufacturing Massive NORP innovation opportunity And frankly one of those things that the United States GPE is phenomenal at Is we know how to innovate and be an entrepreneurs and how to scale but if we've lost our billy to actually make then we start to actrophy the innovation side Inventional wisdom is that United States GPE can't manufacture things at costs that are attractive to markets so that's why we've outsourced it. You think that's unfair? It was fair during what I call the loss of industries such as textiles and foot Clothing which were very labor intensive. It's completely not the case with things that make the iPhone ORG , okay? And all the circuitry and semiconductors and high-end technology Pots EV's PRODUCT this is where the United States GPE is actually the best at and it's not labor cost driven so offshoring and outsourcing and and moving things for labor costs fine they went to countries that have lower labor costs The Bangladesh is on the Vietnams PERSON but the high end manufacturing, the quality manufacturing, for 2 days DATE and tomorrow DATE 's technology innovations. We should be the epicenter of that right here in this country Because the labor cost is actually not the relevant cost The relevant cost is actually the raw material the supply chain and we have the market This is one of the few countries in the world that can say on one CARDINAL country I have a massive market The way I'm in love people and natural resources that's manufacturing Now you were an immigrant to the United States GPE and your grandparents were immigrants to Australia Immigrants ORG has often said have like capacity to work very hard to prove themselves and move up the ladder so do you feel you have an immigrant mindset that is pushed you to do all these things I think my story as growing up in an immigrant family where English LANGUAGE wasn't the first ORDINAL language at home it was Greek NORP and speak Greek NORP man do I do yeah and use for a lot I guess when you're talking the Olympic committees Never thought of that but yes it's probably useful for that. I think the immigrants backstory I have really drove me to work hard. But also Make a difference and a very American NORP trade what attracted me to America GPE This very day and don't embarrass you. You're a great example of it. Is the amazing giving back that occurs in this country? And not enough of us know a lot about it. It gets a bit a few headlines. So I mentioned the tax and spend thing as being a detriment to building modern infrastructure but On the other side Are charitable and give and care about making a difference in their community that's what Dow showed me and that's what I and my wife Paul PERSON and I live today that American NORP Hey Or an immigrant? For the next immigrants I can make we can make their life better so for somebody who's watching this and wants to be a successful global business leader what are the skill sets is it hard work learning how to read well keep continuously reading learn how to a good speaker what are the skill sets you think somebody really needs One of the things that I would add to that list I agree with all of that that I would do and I still do to this very day is I would prepare Well before I got the job or was given the nod I would know as much about what I was about to be offered or to do Before I actually did it I would read I would talk well before the days DATE of the iPhone ORG I would go to the library I remember my father knocking on the door was the sucker appearanica salesman remember those books there were 12 CARDINAL of them right and I would begged him to to buy them and he said only
Trying to win a basketball championship. Then when you're trying to please investors where's the greater pressure I think it's definitely trying to win a championship. It's hard because a lot of like when you invest and you know this, when you're investing You can control a lot more things It on a basketball court you can't control whether somebody's gonna make a shot you've gotta get lucky and what's the greater pleasure making five CARDINAL times your money on a distressed debt investment or winning the NBA ORG championship They're both fabulous I I wish I could do one CARDINAL each year that would be great but I I think there's a great feeling in being right on an investment that Which I think is great. Winning a championship It's a very surreal feeling because there's a whole city or state that is actually behind you You know, we had 70 1000 CARDINAL people at the finals and we had them all outside. It's 17 1000 CARDINAL in stands. And then literally like 60 1000 CARDINAL people outside And when we won like just the joy that you had brought to the city was phenomenal. Watch Bloomberg PERSON surveillance early edition for the news you need when you need it. In new york GPE and Anna Edwards PERSON in London GPE . Australia Central Bank ORG . Then surveillance for in-depth analysis. And Lisa Brown PERSON with some Jonathan Farrow PERSON the RPA front and center. How does Japan GPE get away with not raising rates? Can it sustain? It's normal at a time when everybody else is facing a very different reality. Be prepared be ahead of the game. Access the financial world on demand Here from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Sustainability ORG , security, and hunger. In this episode of Bloomberg Green PERSON , we're focusing on food and how we can produce its carbon footprint and get it to the people who need it. We'll explore the near shoring of food production. We are locating our farms close to the cities that we are actually serving. The consequences of a lack of food for the poorest in society. Right now, at this very moment, we do not have a food availability issue in the world. We are grappling with a food accessibility and a price-related issue. And solutions for the planet like vertical farming. Mitigate risk and overcome those make a changes we need to diversify and we need to find alternative ways to too farming From Bloomberg PERSON 's world headquarters in New York GPE I'm Kaylee Lyons PERSON and this is Bloomberg Green PERSON . According to the United Nations ORG around the 10th ORDINAL of the world goes hungry that's about One 1 million CARDINAL people and the number is rising up about six% ORG last year DATE . Africa LOC With more than 20% PERCENT of the population facing hunger. The coronavirus pandemic and the war in Ukraine GPE are exacerbating the issues and putting at risk of goal to solve the problem by the end of the decade DATE . Another key risk for many poor countries is
Exacerbating the issues and putting at risk of goal to solve the problem by the end of the decade DATE . Another key risk for many poor countries is extreme heat and what that does to crops. In last week's DATE episode, we covered what extreme weather can do to the world and people and in this episode, we're going to focus on food, farming, and solutions to solve the Availability. And then explore some solutions for producing food near where people live including vertical farming But first let's explore the impact of near shoring food production. President Joe Biden PERSON has signed a sweeping new tax in climate plan into law the White House ORG describes it as a largest ever single investment to address climate change. Hey offers further proof at the Soul America's ORG Vibrant Future of America ORG is bright and the promise of America GPE is real and just beginning. Will mean investment in new companies joining the fight against global warming summit the forefront are those involved in near shoring food production but what does that actually mean? Well, it's the opposite of globalization. Instead of taking advantage of cheaper labor and prices another countries nearshore and produces goods near where they're consumed. When it comes to dinner, food eaten in the US GPE , travels between 1525 100 DATE mi from farm to plate. Is that a bad thing? Well, it is if we care about food security or emissions. The last 10 years DATE saw more emissions than ever more than a third CARDINAL came from food production and food transportation is worse than we thought a recent study found that it produces up to seven and a half DATE times more greenhouse gases than previously estimated. Food miles are likely responsible for about six% NORP of the world's emissions that's three 1 billion tons QUANTITY of COtwo ORG equivalent every year. Emissions aren't equal The 12 CARDINAL . Five% of the world's population in richer countries account for 46% PERCENT of the emissions from food miles More than a third CARDINAL of those emissions are generated by the international trade of fruit and vegetables the highest for any group. The emissions from transporting fruit and veggies nearly double what's produced in growing them. Stick into your five a day DATE maybe healthy for you but if it comes from thousands of miles QUANTITY away the impact on the planet can be huge take a head of lettuce Grown in California GPE and shipped across the country to Washington DC GPE that uses up about 36 CARDINAL times as much energy for transportation as it actually provides to the person who eats it and the problem is only likely to get worse. Food production is helping On the planet and that warmer planet isn't turn affecting food production Scorching weather and drought are decimating farm mules from Waterloo to Wichita GPE from Bangalore to Bordeaux. Food security also takes a hit as it becomes harder to produce and distribute spontaneously when supplies get disrupted i say have been by the war in Ukraine GPE or lockdowns in China GPE . And climate disruptions are expected to get more buried and extreme. Report even suggest that increase temperatures are changing way through taste and making some varieties of fish and vegetables harder to find. What if we could have a positive feedback loop instead? Goal with near shore. Goods are closer to the consumer, instantly cutting out most transport issues, a meeting less and producing less waste. Locally grow food doesn't just travel us It's also more likely to come from small family farms which are run sustainably. They use less water and fewer harmful chemicals. So far this millennium DATE we've been encouraged to become herbivores Or perhaps this time the focus shifted to making us look a voice. People who eat food produce locally within 100 CARDINAL mi of our homes. Coming up food insecurity how bad could it get we'll take a look at the potential consequences and at Efforts to patch this problem. Bits is never green. So what's the best investment advice you've ever been given by anybody? Pound interest. The compounding of returns is an incredible mirror.
Unpound interest the compounding of returns is an incredible miracle of business finance and human existence Everything you learn is additive everyday and if you keep at it and don't quit It's an incredible miracle and it's and it's not just interest it was it was always said about compound interest returns Compound business returns compound human returns They're all very adventive. Could you learn everyday? And if you keep at it, it's very very In your observation of investors what do you think is the biggest mistake that average investors make selling it the wrong time and they sell when the prices go down yes or yes not keeping look people have conviction Are the ambassador if they invest for the right reasons that just keep at it. Big tech reports earning. Bloomberg PERSON brings you the headlines first ORDINAL . It really is a story of strength plus expert analysis to keep you informed. Fact that they are not profitable is concerning. This is a company that indicates maybe a recession is coming. Bounce back coming in next year DATE . Earnings like Bloomberg PERSON . Business authority. Technology with Emily Chan PERSON . Welcome back to Bloomberg Green PERSON . I'm Kaylee Lines PERSON from Bloomberg ORG 's World headquarters in New York GPE . After an era of abundance fears abound that the world is entering into a fresh era of scarcity everything from climate change to pandemic disruptions to supply chains to war in Ukraine GPE and de globalization have impacted food security globally Deputy director general of the food and agriculture organization of ORG the United Nations ORG . Beth First ORDINAL just talk about the issues facing our global food supply and where climate ranks in that how great a threat is it? Yeah so you are are right on message and the fact that we are very much dealing today DATE with a climate crisis Agriculture ORG and food production is right at the center of and this comes as we all know setting right on top of the COVID-19 pandemic now we also have the war in Ukraine GPE which is disrupting markets creating other challenges for farmers all over World in terms of supply availability of both commodities and fertilizers and other important inputs. So, when we think about the importance of needing to address climate driven challenges and thinking about the future of how agriculture can become more sustainable, this is the moment I think before us to really make sure we we commit to that Well as you say this is a problem all around the world but what region Are at the greatest risk. Yeah so when we really focus on climate I think we have to be honest that really it's every part of the world that is seeing climate driven impacts we we see those in the United States GPE we see them in Europe LOC whether it's it's increased temperatures new floods that are emerging continue drough Rivers ORG are drying up but when we look at the places on this planet where people are food insecure they're hungry they're being driven to really high rates of of starvation and and even malnutrition when we really think about those places and also have conflicts that have emerged we really Need to focus our attention on the continent of Africa LOC , on the global south, Latin America LOC , Central America LOC , the dry corridors we call it, and other parts of of Asia LOC as well. The climate crisis is here in every part of the world We need some kind of call to action if we're going to solve that problem or at least mitigate it, right? So, what Tangible GPE . The way we eat what we're eating.
At least mitigate it, right? So, what Tangible that can be done to protect the global food supply or at least adapt the way we think about food the way we eat what we're eating in order to be able to deal with that changing climate Yeah, so this is where for agriculture especially, I think this is the moment where all of us need to do agriculture as part of the solution as opposed to being a part of a problem. And this is where a real commitment to Agricultural production which means doing more feeding more people but doing it with fewer resources, fewer inputs, and with less of an impact on the planet. So, doing more with less and this is where I think in this very moment, the opportunity for science, for innovation, for Productivity ORG changes to all of agriculture is most important. And finally Sectors of the economy in the last year DATE we understand that constraint supply leads to higher prices how much when we think about food shortages is just that actual shortage not having enough to feed people and how much of it is that what is available is more expensive There for affordability becomes a problem and access is an issue Right now, at this very moment, we do not have a food availability issue in the world. We are grappling with a food accessibility and a price related issue but Moved out of the black sea LOC region. We are seeing record prices start to ease a bit. We are having good crop production forecast in number of the important regions of the world and so the very I think important message for all of us is Really make sure that we keep markets open that we don't find ourselves in a position where countries are imposing unnecessary trade restrictions or other kinds of fans on on market openings this will be another really important I think aspect of navigating these next several months DATE . Deputy director general of the food and agriculture organization of ORG the United Nations ORG thank you so much. And coming up, we've seen the problem. We've looked at the consequences. So, what solutions are out there? We'll take a look at some innovative methods which are prime to change how we produce food and how far away we produce it. That's up next This is Bloomberg Green Okay so you're moving in on me quick I'm Deal with your night cuz it's really bothering me. Oh Yeah. Up to this weekend DATE . Lot of chess. For for you. I know you're pretty good Oh I don't like that I will take this Put it over here. Not cool. Cool. Alright. I will, I will concede. I can see Very good game. Well played. Thank you sir. Bloomberg PERSON crypto Tuesdays DATE
Crypto Tuesdays DATE . Welcome back to Bloomberg Green PERSON I'm Kaylee Glines PERSON from Bloomberg PERSON 's World Headquarters in New York Raining GPE agriculture remains one CARDINAL of the biggest challenges in the fight against climate change with food systems responsible for as much as 30% PERCENT of global greenhouse gas emissions as well as contributing to a loss of biodiversity. At the same time, extreme weather events linked to rising temperatures undermine farming and seafood production creating a vicious cycle. What solution may be swapping breath for height and farming into the sky. Vertical farming methods may be able to deliver high Produce to local consumers with less waste and without concerns over fickle weather. We sometimes like name I wanna only know but they wanna be part of the action. What is been important about indoor farming is that this opportunity to really understand the possibilities that we have in the years DATE to come. Warehouse scale indoor farms. Completely independent of weather in seasonality. While we're really doing is not just reinventing farming we're actually reinventing the entire supply chain we're locating our farms close to the cities that we are actually serving Weeks DATE or months DATE of time nutritional agricultural system. Jose Andres PERSON has been an investor and an adviser and a friend of Valerie PERSON for quite some time. Because the pandemic And this is the situation inside Korean NORP right now. Simple thing of producing food. Hey bro completely pesticide free so there's no herbicide no fungicides no insecticides for over 100 times more productive than a square foot of traditional farmlands and we use only a tiny fraction of water compared to traditional agriculture What makes that all possible is a combination of robotics and automation that we design and develop on our own as well as the baller operating system. Attributes around our crops and to adjust variables in real time and that kind of control allows you to drive flavors and attributes of props that we've never even experienced yet before. A power we focused on leafy greens and herbs as a start and we have the technology we have the retail partnership we have the know how to begin to move into new crops. Incredible representation of what we can do in our area. It's a fruit that's extraordinarily seasonal. One CARDINAL of the most pesticide ridden fruits. These aren't issues that we face. So we can focus on variety and flavor and texture There's Mel PERSON is unbelievable. It's a great strawberry. Hey Facebook Of course be in my restaurants totally. Being the right technology the smart technology to be able to Faster PERSON , quicker, better, smarter, less use of water. Dance props.
Even more calorie dance props. If Valerie PERSON we've been growing hundreds and hundreds CARDINAL of variety of crops we're thinking about agriculture for the generations to come given the climate crisis that we're dealing with today DATE . More chances we have to solve any of the food issues we face Not all of us have the luxury to go to a farmer's market. We can bring that high quality, local, fresh produce to consumers everywhere in all types of retailers as well. So, what you see here is very much the future in more ways than one. For more let's bring in Erez Galonska PERSON the CEO of one CARDINAL of Europe LOC 's largest vertical farming facilities in farm. Great to speak with your rest. So let's just talk about vertical farming as a whole and what problem it is you're trying to solve. First ORDINAL of all we are at in farm Being a global farming network powered by AI GPE to provide premium produce if you like in affordable prices our vision is to help cities become more self-sufficient in their food production and I can tell you that at in farm we escape ourselves one of the biggest questions And trying to overcome one of the biggest challenge humanity faces. How to feed clothes to 10 1 billion MONEY people by 2050 DATE . We know that we have three CARDINAL main Threats NORP , very big ones that the world is facing today DATE , climate change, And of course wars and this shocks represent major wake up call to the fragility of our food systems and the need to make the most resilient and more reliable to feed people at scale and this is exactly what we are doing in fun So obviously there is a major challenge that you are trying to help address but that doesn't mean that you don't face challenges yourself what do you think the biggest issue is Vertical ORG farming as it attempts to scale and meet the world's needs. I would echo again the biggest ones is execution and with the climate change in the pandemic supply chain instruction ehm logistical eh going up inflation ehm Other very big problems that eh Today DATE . We know that this shocks install time and we are very much focusing on execution, delivery of products to our consumers and to our clients and I can tell you that we already signed hundreds of millions CARDINAL of contracts with leading retailers globally. So, it's really it's about execution and delivery on time and it's Me challenging during during this tuberlint And times. Well, clearly in farmers growing very quickly, what scale do you think you'll able be able to reach eventually? By 2030 DATE . We tend to have growing centers in 20 CARDINAL countries with millions CARDINAL of growing Square meter Active in the field growing the entire foot in there, vegetable basket, I can say Supply chain destruction and the ongoing war in Ukraine GPE . We continue to execute. We just tell launch a new facilities in 2022 DATE . Increasing our footprint by 20 1000 square meter QUANTITY which is 40% PERCENT up then half one of last year DATE . And just widening the lens beyond in farm when we think about vertical farming as a whole What role do you see it playing eventually in the agricultural mix is this going to supplant traditional agriculture 1 day DATE in the future? To mitigate risk and overcome those negative challenges we need to diversify and we need to find alternative ways to to farming and of course vertical farming control environment that we portraits one of those solution if you look on the total addressable market the food and vegetable market we are talking about Three 1 trillion QUANTITY soon to become six 1 trillion QUANTITY food and vegetable market and a vertical farming market share from this is going to be in around 30 1 billion by 2030 DATE and I can say that
And the vertical farming market share from this is going to be in around 30 1 billion by 2030 DATE and I can say that this trend will continue as food and food security become even more important in times of crisis. Alright, on that note, we will leave it as CEO of In Farm thank you so much. Okay, so we've looked at how we might form better on land but how about our oceans? Sustain Fish farmers say we're in salmon far away from their wild cousins solves the problem of waste parasites and disease so let's take a look at how Blue farms in a close loop ecosystem to minimize their environmental impact. Any salmon that's produced on land is better than a salmon that's producing an open net pen. The attitudes are changing per capita consumption is increasing of seafood and aquaculture needs to respond. My name is Kirk Havercroft PERSON and I'm CEO for Sustainable Blue ORG which is a land based salmon farm situated on the Bay of Fundi Currently LOC in North America LOC we consume somewhere in the region of half CARDINAL a one 1 million metric tons QUANTITY of Atlantic LOC salmon every year DATE but only about 140 1000 metric tons CARDINAL of that is actually produced in North America LOC and the reason for that is that salmon farming in the ocean can only take place At certain latitudes because salmon need are fixed ranging water temperature within which they can survive. There's what we call open the forms of aquaculture and this is where we see cages or pens that are suspended in the open ocean. If there are any diseases or anything like that. There's no way of protecting your fish from that. And that's a critical piece of the problem that we're trying to solve. So Rasfami GPE has a tremendous opportunity to fill that domestic production gap of the acronym rust stands for recirculating aquaculture system the water circulates between the fish tank and the filtration system which keeps that water clean and returns Back to the fish and that keeps the fish healthy and protect the fish from whatever those threats might be out in the ocean In traditional Rass Farms ORG as the fish are feeding and producing that waste. The waste is filtered out and then finally discharged back to the ocean. And that was a particular component that we wanted to resolve. Sustainable blue has developed its own filtration system which is not discharge any waste back to the ocean at all. Advantage that that gives us is we can detach fully from being located by the ocean and produce fish where the fish are consumed rather than producing fish where the farm has to be located. We actually have both fresh water facilities and salt water facilities here. We have to do that because such that their biology needs fresh water at the start in salt water at the end. So we're not about to change that. We have to replicate what happens in the wild. Whilst I think what we all felt was a small business when we started over the past 10 years DATE what we've seen is the almost infinite potential That this kind of technology brings. It has given sustainable blue the position of being to the best of our knowledge at least the only oh discharge salt water aquaculture facility anywhere else in the world. So from the problems the food scarcity supply chains and environmental concerns to solutions like vertical farm This week DATE we've explored the impact of agriculture on society and the environment. That'll wrap it up for this edition of Bloomberg Green PERSON but you can keep the conversation going by following us on YouTube ORG , Instagram ORG , and Twitter PRODUCT . From Bloomberg PERSON 's world headquarters in New York GPE . Is blueberry green.
Headquarters in New York GPE . What are the moon shots at amazon that are capturing most of your time and attention? Well, you know, we have a unique way that we go get Big new investments and I'm not sure it's right or wrong. It just happens to be our way and we ask ourselves when we're considering something. Four CARDINAL questions. We we ask if it's successful, can it be big and move the needle in Amazon ORG ? Is it being well served today DATE ? Do we have a differentiated approach Do we have carpets there? If not, can we acquire quickly? If we like the answer to those questions, we'll go pursue it with a single thread team that isn't distracted by the rest of the business. When it comes to the stock, it has fallen significantly. Do you think investors are miss Something PERSON or has tech just been overvalued? I have never tried to predict what stocks may do and anytime I've tried to a little bit, I've been wrong. I do really believe that in the short term, the stock market tends to be evoting machine in the long-term intense to be weighing machine. We have a concept we talked about a lot at Amazon ORG . Imports and outputs you know in the ultimate output for a company a share price you know and then other big outputs of free cash flow or profit or revenue you can't really manage the outputs you have to manage at the input level and that's where we spend all our time and so if you do the right things for the business long term things tend to I think we've had very good returns for investors and I expect that to be true again. When US GPE inflation numbers are released Terminal speed. Bloomberg Bloomberg PERSON . The iconic American NORP car company GM ORG is in the midst of a dramatic transformation. We really feel general motors is moved from being an automaker to really a platform innovator. Production of all gas powered cars and trucks by 2035 DATE . With EV ORG penetration still in single digits it's a bold bet on the future of mobility. Shift to electrification and ultimately autonomous vehicles is The most transformative Thing that's happened in the auto industry maybe since Henry Ford's PERSON assembly line. It's monumental. We've got an industry that's it's really stayed about the same for about 50 years DATE the thing that's different now is that a confluence of what we call connected shared and electric That are really new things in a quantum way to the industry Vehicles by the year 2025 DATE that's where CFO ORG Paul Jacobson PERSON comes in With finances really being two CARDINAL fold number one CARDINAL is making sure that we're supplying the information on how we think those decisions and that transformation are gonna project out financially and then number two CARDINAL is make sure that we get the right resources in the right place at the right time which can be challenging with so many different directions and so many opportunities ahead of us. And long term rather and additive business Company that's focused on tech. It's a focus company that's focused on revenue diversification and with that, there's a lot of margin expansion up ahead. You gotta be optimistic about the future, making sure that we're allocating capital into the right places to fund the transformation.
There's a lot of margin expansion out the head. You gotta be optimistic about the future making sure that we're allocating capital into the right places to fund the transformation. For 90 consecutive years DATE general motor ORG sold more vehicles in the United States GPE than any other manufacturer that streak ended in 2021 DATE when japanese NORP rival Toyota ORG took the crown Record profits in Paul Jacobson's PERSON first full year DATE as CFO ORG and that's a good financial foundation for the task ahead. If you have a dashboard that you look at and see if At the EV ORG transformation right now. Are there any reds on that dashboard? Well, I think we live in a world that seems to be red for everybody, right? That's been one of the one of the challenges. I mean, since I arrived here, year and a half ago DATE , it's it's really been about the semiconductor challenges, the macro economic challenges, supply chain, etcetera. But That is just part of transformation, right? Not everything goes according to plan and you just gotta make sure that you set your sights on the horizon and make sure that we continue to track to it. I think the team's doing an extraordinary job. There's a lot of uncertainty out there and that's one of the things we have to manage. We're blessed with a tremendous balance sheet. The team's done an amazing job. Funding the pension, paying At which put this in a position where I don't actually have an aversion to using the balance sheet to continue on our path if we need to temporarily Cheap shortages and supply chain disruptions have driven global car sales volumes down from their 2018 DATE peak but it may have long term benefits forcing companies like GM ORG to tear down silos and bring teams together to find solution We actually is a management team all the senior leaders of the company get together once a week and we've been doing that for a year and a half DATE to talk about here's what the forecast is here's what we're gonna do to mitigate it and here's how we're gonna And it's been one of the most amazing examples of collaboration I've ever seen in in my career. Functional leads or vice presidents There would lead a product development or design or sales or marketing or whatever that is you know it's really it's really everybody's together our staff meetings are together it's very very much one team and that's changed everything we've already talked about how we are simplifying the Can going to three CARDINAL chip families that's gonna put us in a position where we're not as beholden GPE to hundreds and hundreds CARDINAL of chips depending on which vehicle where anyone of them might hinder production. So, lots of things across the horizons that we're doing to make sure that this becomes much much easier to navigate in the future. Global demand for metals used in batteries is already putting pressure on supply chains and driving costs higher. Commodities prices for those That are like lithium like cobalt that are used in EB batteries have Sword GPE . Those materials also not are just expensive. They're generally in places that are have geopolitical issues. How do you address the things like lithium? Things like nickel. There's gonna be a shortage of how do you make sure you have that at a price you're gonna force you don't have a rapid spike up in the price. We're really looking at a multifaceted approach. Anything from traditional supply chain procurement type functions all the way to joint ventures or Term contracts. It's not about capturing the best price today DATE . It's about capturing that consistency of the business model that we can plan around and anticipate going forward to make it easier to to fund this transformation. But while Jacobson PERSON takes steps to head off headaches use also aware that GM ORG 's electric future holds huge I think the most exciting thing about the EV ORG transformation is it's fundamentally gonna change the way we make money at general motors. Because if you think about it, the overwhelming majority of our profits come from the time that we sell a vehicle to a Right and and that vehicle enjoys a lot of revenue for very different companies over the life of of it on the road.
Revenue for very different companies over the life of other on the road. The electric vehicle and what connected vehicles are gonna do for us. In is increase the revenue opportunities for us over the life of that vehicle. Second ORDINAL owner, third ORDINAL owner, fourth ORDINAL owner, because we're gonna be able to offer ways through over the air updates to customize it, subscriptions, various services, insurance packages, lots of different ways that we can interact with a customer Historically, we haven't been able to. How much of your top line, Total Robins PERSON ? Gonna come from selling vehicles as opposed to the services that you've just been describing. So if you go back to our industri day last year we talked about doubling our revenues while expanding our margins by 2030 DATE . The doubling of the revenues are coming both from growth and auto sales because there's a big overlap and we're getting new customers every day DATE on electric vehicles The ones that were taking reservations in orders for right now. So, what we talked about is 20 to QUANTITY 25 1 billion dollars MONEY a year of revenue in 2030 DATE around these services that we can provide going forward. So, it's Massive NORP growth off of what we've currently experienced with OnStar ORG historically and really excited about what that's gonna bring. Also expect significant growth to come from cruise. It owns 80% PERCENT of this startup that's developing autonomous vehicles. Despite considerable investment in advanced technology, the company has resisted the temptation to spin off these units so far. Is there a world can you envision as the chief financial officer a world in which you say you know what there's an old businesses and new business we should trade separately well there's a lot of commonalities between the businesses About 7080, percent PERCENT of the vehicles are the same, right? They both need brakes, they need windows, they need features, inside the vehicle seats, etcetera. So, We can do to make the ice vehicles more efficient and more appealing to the customer is only gonna help us with our EV ORG transformation and that's why that integrated approach is so critically important to help fund that journey for us going forward. Investors have indicated that there are long for the journey as well since July 2020 DATE shares of North American NORP automakers have significantly outperformed the SMP 500 LAW even after broader economic and geopolitical turmoil drag them down from their peak By Wall St. The companies will now need to deliver on be prepared to deliver on that in a post supply chain world. A part of your job is to make sure that a wall street is getting the message that you want them to have about general motors. Where are you in that right now? Where is general motors in the perception on Wall St The extension which it really is a tech company on the forefront. Yeah, I think the challenge with what we did is we pulled out 10 year DATE goals. That's something that was kind of unheard of in the industry as well as as here at GM ORG and now what we've gotta do the next phase is make sure that we're giving a road map to investors out there to say here's what you can expect to see in the next 2 to 3 years DATE and as you see You should increase your confidence that we're on the journey to get where we need to be in 2030 DATE . Monthly DATE which is fine. Our goal is nothing more than execution at this point. As we produce and execute the confidence will Nothing is going to to take us off track from that execution we know we have the right strategy so that will come. About the long term. We're not running the company for the stock price today DATE . We're running the company for value creation over the long term and I feel like we've got a really really good hand to play. Coming up Paul Jacobson PERSON tells me what he's learned about GM ORG 's electric future from driving the brand new Hummer EV ORG . Taught me number one you know what what are the concerns of the consumer that are ultimately in the driver of vehicles and then number two CARDINAL where do we need to focus on addressing some of those anxious points for people and we visit the lab where today DATE 's investments are developing tomorrow DATE 's batteries Chemistry ORG and say this is superior but can you replicate it millions and millions CARDINAL of times across the entire portfolio Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when
Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now Type phrases in everyday English LANGUAGE in the command line. Compare financials. You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Hear from leading economists Policy makers And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring just see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have That the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. General motor CEO Mary Barra PERSON and President Mark Royce PERSON are not only auto industry veterans their second ORDINAL generation GM ORG employees following fathers who both worked at the company Paul Jacobson's PERSON new to the car business he launched his professional career at Delta Airlines ORG including 7 years DATE as CFO ORG before joining GM ORG in December of 2020 DATE I started with Delta LOC back in 1997 DATE as a financial analyst business school and just had an incredibly blessed career there to be able to see and do so much and got to be treasurer through the bankruptcy which as a corporate finance person bankruptcy is the best experience you've ever hoped to repeat. But it gave me a really good platform Strategically across the board. Appreciates what Jacobson PERSON brings to the mix. Others in the airlines or the auto business focusing on the customer and being best at sanitizing our customers whether it be designed whether it be the actual vehicle of an entry itself the experience in buying experience at the dealer whatever that is you know committing resources those places to grow The top one CARDINAL . Delta LOC we were a company that is 100% PERCENT focused on customer service and I had you know the opportunity to learn from Richard Anderson PERSON and then Bastion ORG on the finer arts of of leadership and and transformation and through a company that went through a lot here is very very different working for a manufacturing company is I I tell my wife all the time it's just it's amazing to be around people who build things. Assembly plants to ramp up EV ORG production The objective to create a scalable platform that eventually dries down costs call jacobson took me to the laboratory where this Is taking shape So we're in the heart of one CARDINAL of our battery testing labs where we test all aspects of the battery resiliency hot extreme temperatures shaking vibration etcetera So we are investing a ton into battery So around us we've got the testing We're also building a new manufacturing cell manufacturing test facility. We're gonna test different ways of manufacturing so cuz it's one CARDINAL thing to look at chemistry and say this is superior but can you replicate it one 1 million A millions MONEY of times across the entire portfolio. So, we're an execution mode. We're producing cells now at Lordstown GPE . It will be rolling those out soon. We're already have these cells and the Cadillac ORG lyric as well. But as far as techno
Now at Lordstown GPE it will be rolling those out soon where already have these cells and omelette and the Cadillac ORG lyric as well but as far as technology and chemistry I think we're just kinda the beginning of where where that might go over the long term. Do we go to solid state? Or or what? So, we're looking really at a portfolio approach to make sure Vehicle comes off 10 years DATE down the road what percentage of the cost of the vehicle will be just tied up in a battery like that well the battery in the motor systems are sort of the equivalent of the In the transmission today DATE . It is, it is costing more, obviously, for, for those systems going forward, but we think that technology is gonna come down overtime as well, which is why we've said, we think we can get an electric vehicle to parody, profit parody, if you will, by the end of the decade DATE . With their ice counter park. Profitable on the labor side at least in the manufacturing phase. You just looked at the powertrain of the vehicle, the parts that are different in a nice versus about 40% PERCENT less labor hours TIME . Power train. There's 40% PERCENT less labor needed. But certain engineering skills are likely to command a premium. We're seeing auto companies on the engineering side Out in the marketplace competing for engineers that they're competing with video game companies so silicon Valley LOC companies a different kind of engineered software engineers are you know really need it and so there's this big competition for back kind of Employee and and attracting them to the auto industry which is in considered you know an old rust belt industry. We've been hiring really aggressively over the last couple of years DATE in software in chemistry in in just broad engineering across the board and what we found is people are attracted Employees are focused on. I wanna work for a company that shares my values. And when you look at what GM ORG is doing in our pivot through electric vehicles. We find a lot of people wanna be a part of that. Us GPE car buyers are also getting with the program sales of fully electric vehicles group by 85% PERCENT from 2020 DATE to 2021 DATE with Tesla accounting for three CARDINAL of the five top selling models Hurdles remain and the issue of charging might be the biggest. Think of the reasons why people avoid an electric vehicle now Four CARDINAL of the top five CARDINAL reasons are related to chart Us GPE charging infrastructure is steadily improving but consumers still worry about being stranded without power on road trips Paul Jacobson PERSON assured me that when he takes the new Hummer EV ORG on long journeys it's not just fun to drive it's equipped to go the distance I hear so much about road trip anxiety that I wanna do experience it myself my family likes to drive a lot so I brought my daughter home from college in this and and it was great I mean the computer system is all intuitive it tells you how to keep track of the battery it tells you where the charging stations are it tells you how much power you'll have when you get to the charging station so it really puts Out of your anxiety but as far as driving it, it is, it's a treat. So, where are you on the charging stations? I know general owners has made an investment and one CARDINAL company. Well, how are we doing in this country generally and getting charging stations in? So, I think this is this is an area where obviously we can Can continue to improve as a country and a society. We're doing our best. We've committed almost a one 1 billion dollars MONEY to EV ORG charging. So, we've we've taken that and looked at home charging solutions, local community solutions, and road trip charging solutions. What? You know, with my daughter, what we would end up doing is Plugging ORG it into a charger usually a high speed charger to get as much charge as we can and being there for 20 to 30 minutes TIME get a salary range and by the time we've used that range retired ready to stop Saturday DATE . So, it was it was a really good experience for me and it's taught me number one, you know, what what are the concerns of the consumer that are ultimately in the driver of vehicles and then number two CARDINAL , where do we need to focus on addressing some of those anxious points for people?
Number one CARDINAL , you know, what what are the concerns of the consumer that are opening in the driver vehicles and then number two CARDINAL , where do we need to focus on addressing some of those anxious points for people? Up next the battle for EV ORG supremacy may be one or lost in China GPE Paul Jacobson PERSON thinks GM ORG is ready to take up the challenge the world is competitive right and and the world of electric vehicles is only gonna get It doesn't matter where you're operating in. He reflects on how the role of the CFO ORG has changed over the years DATE . Today DATE 's CFO ORG has to be much much more than a bookkeeper. Has to be a strategic business partner at the table helping to see around the corner and helping to prepare the organization for what could happen. This is Bloomberg Companies now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to Comprehensible ORG to the software that is reading it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? In 2021 DATE despite COVID lockdowns and supply chain breakdowns general motors delivered nearly three 1 million QUANTITY vehicles in China GPE and since China GPE still taps the global market for electric vehicles GM ORG expects it's foothole to be helpful as it New EV ORG models. Role. We've got great JV partners. We do on the brands in China GPE and so we've got you know good brand representation in the design of the And then also we've got the flexibility and something like our ultium architecture for batteries and cells that is flexible enough to handle the requirements of of a prismatic cell like CATL makes in China GPE Stay favor some companies over other companies is that a risk potential for GM ORG because you have some Chinese NORP native companies where I can put that where I could BYD we believe we're in a good position At the end of the day DATE , the world is competitive, right? And, and the world of electric vehicles is only gonna get more competitive. It doesn' Where you're operating in. So, we need to focus on the quality and the customer offerings that we have. Regardless of which market we might be going to. There's one CARDINAL thing everyone agrees on when it comes to selling vehicles in China GPE . The future is extremely difficult to project. China GPE 's been interesting because Penetration. To being a stick. On the industry with trading such. That's greatly favored the startups. And it's been harder for the traditional automakers both domestic and and the western automakers are foreign automakers there. In terms of the the subsidy and the this Very much depends quite a bit on the regulatory environment In shown as to what China GPE looks like.
Regime on electric vehicles. So, Very much depends quite a bit on the regulatory environment In shown as to what China GPE looks like in 2030 CARDINAL Paul Jacobson PERSON tends to view the future with a healthy blend of optimism and pragmatism I asked him to look ahead at some big picture issues. Over the next 10 years DATE excites you the most about opportunities for general motors. I think the most exciting thing over the next 10 years DATE is we don't know about all the opportunities to generate revenue and serve the customer. So, I'm really excited about that. Okay, what are the next 10 years DATE ? Make sure most nervous. I'm not sure if it keeps you up at night but heads in that direction. Yeah, I think the thing that keeps me up at night TIME over Next 10 years DATE is just thinking about the macro landscape. The world is changing so rapidly. We have a lot of competitors coming at us and you know, we're gonna meet those challenges but we don't know what the world's gonna throw at us. We gotta make sure that we are very nimble We've talked a lot about the changes coming for general motors as you look at your job and see if how will that job have to change because of those changes in the movies. Well, I think as as you think about any CFO ORG not just the moved EVs but just the move to We don't have time to look back over what happened last year DATE or last quarter DATE . What happened last week DATE ? What happened yesterday DATE ? How's the business performing? And how do we get real time information to the business leaders? Over the time that you've been to CFO ORG what has changed most for you what skills have you had to develop Well, I think, you know, as as as OCFO's experience, you get, you get much, much more ingrained into the strategic side As I said today DATE 's CFO ORG has to be much much more than a bookkeeper. Has to be a strategic business partner at the table helping to see around corners and helping to prepare the organization for what could happen. If somebody took the job to see if I had some company today DATE what would you advice them Everyone is listen. Are there and their view is the people are there to say no alright I I like to challenge our team to how can we find a creative way to say yes how can we find solutions and ways to make things more efficient not just forgo them in Louis GPE something else that can sometimes be hard for us we're all naturally skeptics that's what tends to do attract people into the Business. So, how are you skeptical with a good vent towards it to helping people accomplish their goal? Finding creative ways to say yes if Paul Jacobson PERSON and his team can do that GM ORG will be well on the way to delivering on its grand vision of transformation I'm David Weston PERSON Is Bloomberg PERSON That is a great question. Great question. I'm glad you asked that. We're independent. David Weston PERSON . We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. No one covers the world like bloomberg PERSON . Seven% in the coming months DATE do you see that coming true
No one covers the world like Bloomberg PERSON . In the coming months DATE . Not just cut and run. 24 hours TIME a day. Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand Here from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the Internet revolution. Who kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. There's an old saying in finance that cash is king but when it comes to payments the data suggests that's no longer exactly the case according to the latest world pay report cash now figures less than 20% PERCENT of in-person transactions around the world Hey from the beginning his his really focused on People to use electronic forms of of pain. In fact, if you look at like the US GPE , for example, Basically have been moving around two CARDINAL to three% of payments from cash and check to some form of of direct electronic just about every single year DATE . Volume X China GPE today DATE at 20 1 trillion dollars MONEY . And there's another 14 1 trillion dollars MONEY worth of cash and check left to digitize So yes we are moving towards a cash flow society A new technology is promised to kick these trends into a higher gear. The terminal on the till of the merchant. How depending on how old one is, one is used to that. At least then, the developed world. That is not everywhere but every one has a phone. Payment payment payments can end up in a super simple way that everybody's hands and for our business that's a massive growth of opportunity. MasterCard ORG is already seizing that opportunity Driven by a rebound consumer spending. See if Osach GPE and Mehra PERSON knows this boom is like your fade. And he's set on finding ways to keep the momentum going. Being successful in this kind of environment is to have a diversified portfolio. You gotta be nimble from an expense standpoint. You gotta be very disciplined. As a finance officer, what I've gotta do is I've gotta make sure that we are investing in those resources Which are currently in demand from a customer standpoint but at the same time not losing sign of the long term. CEO Michael Mibach PERSON counts on Mayrodge ORG do more than just oversee the ballot sheet. The top line for me is Visor PERSON and confident. Conciliary. The rule of the chief financial officer is actually changed value to medically over this 20 plus year DATE 10 year DATE that I've had. You know, in the past, it was more of a function of, you know,
The rule of the chief financial officer has actually changed value dramatically over this 20 plus year DATE tenure that I've had. You know, in the past, it was more of a function of, you know, let's make sure the numbers are good. Let's make sure we got a great control environment. Let's make sure we're actually able to close the books on time. Let's make sure we've got all the financial elements of the business The job of the CFO ORG in in our view in my view is a function of making sure we're creating the right linkage. What the purpose of the businesses, what the strategy of the business is, Delivering on the financial returns for the company all while driving long term shareholder town. We're in the business of leading beyond the numbers. It's great that we know what the numbers are. How do we use those numbers to better drive execution of the business to accomplish The strategy of the company. Mastercards core business is no surprise cards. Carded products currently account for over half CARDINAL the company's revenue. The company said ambitious growth targets it is 2021 DATE investor day. Committing to expand this core and to diversify beyond it. We've been on a 6 year DATE strategy to be a multi-rail company in plain English LANGUAGE that means whichever way you pay people enable that despite the fact that card is an hour name is essentially any type of payment we have the reach so I think we're reasonably well positioned I mean you've just gotta recognize not only where Takes time to And it's a difficult you'll get some you'll get it right sometimes you'll get it wrong sometime but hopefully you're getting it right more often than anything you're wrong and you're working with that forecasting preferences is complicated by an uncertain economy consumer confidence has been plunging to historic lows and recession calls are getting louder still a slowdown isn't likely to cause a crisis for Mastercar PERSON Its peers. To watch people often perceive I think famous as an industry it will be quite resilient in the downtown Generally speaking Even during a recession the amount that consumers spend actually does not go down. It continues to grow. I think the thing that people are worried about more in the payments industry is kind of how does the mix of spending change? The first ORDINAL thing is that typically happens if you're going into a recession environment is people tend to pull back on discretionary categories of spend they move into the non discretionary categories of spend The evidence of food, they're pivoting to rent. Those kind of payments. Which are most important for them to meet. But the real still stay the same. So the real which run debit and credit are exactly the same the technology is the same the distribution models the same So those those areas don't necessarily change by about you off moving into more for debit or credit environment. One CARDINAL area that master card has been moving vigorously into is BtwoB ORG payments a market expected to reach 25 1 trillion dollars MONEY by the end of the decade DATE Tremendous promise and the BWB ORG area the card business as in the the elements of the B to B space which are served by cards. Are doing well. Are they doing very well? And it's in the small business space and the mid market. It's in the large corporate space. All of them do really well. On the accounts people side I would say we're in the building phase. And Whereabout building and open loop environment to enable payments on accounts payable rails. Where is the opportunity in that space is? Different to consumer payments where there is a global standard. The global standard is MasterCard ORG . The global standard ah card payments because that's been established That isn't quite established yet and B to B and I think the more benefits we bring into the payments that are easier than just making a really complicated cross border payment I think we'll find our way there and See an explosion of creativity a lot of other companies coming in and using those rails innovating on top of them. Pursuing new opportunities takes capital Mastercard ORG has spent billions CARDINAL acquiring companies that add capacity and diversified its infrastructure. Acquisitions and partnerships have help master card offer more value added services to their clients tapping into a lucrative revenue stream What we call services which includes data insights consulting manner services loyalty and our fraud capabilities
Into a lucrative revenue stream. What we call services which includes data insights consulting manner services loyalty and our fraud capabilities is roughly 35% PERCENT of the revenues of this company. Wow. Yeah. So, it's not insignificant. So, often times people think mass required and think card. Very important but there's a very different part of Mexico GPE as well. Even as it's put more resources into acquisitions and taken on more debt given the company of flexibility to continue investing. Let's go and buy something. That is that is an opportunistic approach. It doesn't work for us. For me, it always starts. What are we trying to accomplish from a strategy standpoint? What are inherent capabilities we as a company have? What are the gaps in our capabilities to meet that strategy? And then follow those Is it best to build Or partner. We're out there and we're trying to find a right companies together. It's gonna make sure that we have a clear view on short and long-term synergies and so forth. And to investors to explain what we're doing and why we're doing it and why it's good. Shareholders have reason to appreciate Mastercard ORG 's capital allocation strategy. It's included annual DATE share buybacks and steadily increased dividends. How do you prioritize the amount of money that you put toward innovation and toward building out different businesses versus share buybacks and dividends because master card is traditionally had rob Program in rewarding shareholders. Right. First ORDINAL call of capital is to as growth of the business After we have done that it's about making sure we are being good students of capital and returning excess cash to shareholders with a bias to a share buybacks Once you start to come to say i have dealt with my strategic priorities I either have invested in my organic growth or in acquisitions then access cash we will return back Preference ORG for buybacks over dividend because it gives a small flexibility but that's been a good model for us. It's been working well and well received by the market. Coming up how the tap has taken Mastercard PERSON places that the swipe alone could not Particularly on the small ticket items. And later how Master As an on ram. This is Bloomberg Japan's PERSON critical role in the global economy is changing as the world recalibrates. Japan GPE 's leaders are boarding a more innovative and sustainable path forward to revitalize the nation. Corporate Giants ORG , policy makers, and pioneers tell us how they're doing just that. Every week DATE on Japan GPE ahead right here on Bloomberg Television ORG . Such an error joint master card is group executive in corporate treasure in 2010 DATE . Over the next decade DATE , he took on several different roles before being appointed chief financial officer in 2019 DATE . That's a very different path than the one he started out on. Hey undergraduate and then my brother and I got into and hey what put them for three and a half years DATE then I came here for business school. The moment of truth came on graduation day. My dad got on the phone I'm looking forward to having back home. My brother was older than I am. Went to business school as well and went back home and worked with my dad. Congratulate me and said That's what dad wants you to do. And then it really got me thinking and I said hey give him a chance I'd love to work in finance in in the US GPE Even though it took him 6 months DATE to land his first ORDINAL job.
Hey give him a chance I'd love to work in finance in in the US GPE General motors where he worked for over a decade. Then it was on to the energy industry it has corporation before finding his way to Master Today, my dad couldn't be prouder of the fact that you know, I chose the path I did. Obviously, he misses the fact that we're not there as a family but that's just part of life, right? We've all gotta grow in Blossman Groom PERSON . Except at the beginning. It took him all 30 minutes TIME to get there. When Mera PERSON gets together with his team and the employee cafe and Mastercards PERSON campus It's clear that these it is element. Well, more important, more fun stuff. What's the plan for the weekend DATE ? And of course the cafe provides a demonstration of the tap and go technology that's changed the game for payment companies Could I just go to regular coffee at home please? Of this. Yeah. Okay, that would be 571 CARDINAL . You got it. We're gonna make this work. There we go. I think contactless is a very powerful catalyst for accelerating In the last 2 years DATE what we have seen in the US GPE is god penetration corrode annually DATE has doubled What was the average 5 years DATE the pandemic was one of the reasons people did want to touch Purchases the contact list definitely contributed to this It's made of change. It's really made a difference. What it's really made a difference on has been in terms of how it's driving a shift from cash to electronic payment. Particularly on the small ticket items. Which is really really important. Cos at the end of the day DATE our model is as much about converting the dollar value of the spend as it is about the number of transactions Get over on Netflix GPE . Transaction On which we can deliver services and that's really important MasterCard ORG introduced PayPal ORG it's first ORDINAL contact list payment system in 2002 DATE but the technology took some time to gain traction I would say we first invested in this many many many years ago the adoption rate on this in the early part even in Marcus LOC like the UK GPE Canada GPE Australia GPE was doing the early part the inflection point of when It really started to hit it straight was when it was used in the transit vertical. So what we figured is let's get on the transit systems around the globe. Enable for contactless technology. That will create muscle memory for the consumer who will like the experience and transit and we'll use it elsewhere. How do you judge the revenue proposition for Mastercard with innovation like that and the adoption and the pace of it? Look, I mean, for us, we're agnostic as the weather. Somebody's using the chip technology or the contact list technology or you know, using the MagStripe ORG which was the old way of doing business. We on revenues which are quite similar Cross both of those. The revenue potential and upside for us comes from the fact that now more spend is being done on card based on supreme and then was being done in the past. So we're converting that cash over to electronic payment. Which is where the information comes from. If contact list payments is the current revolution sweeping the payments industry what's the next one I think Smile ORG . Biometrics I think that's where it's gonna go. And I think we've reached that point of people are sick of too many passwords. People are sick of typing and stuff and there's also too many wallets and other ideas and stuff that is around. So why don't you just everybody has a smile? So just play with your smile. There you go. How much are you investing in that? How quickly do you see that becoming the next tap and go? Yeah. So look, I I think this is gonna take a while. These things have an adoption curve which typically is fairly flattened the early part and then you start to see some levels deep. The company has opened innovation centers in Australia GPE , India GPE , Europe LOC , Canada GPE , and the United States GPE . These are Where we draw in customers where we draw the local community. We have them in big cities where the latest technology is the players are all around us. In New York City GPE , it's in tech alley and everybody in the tech industry is around us. It's a point where people wanna work and the attractive best talent and we go and this brings us back.
It's a point where people wanna work and be attract the best talent and we go and this brings us back to the CFO ORG . We go and look at our vitality index. So, how are the revenues looking? What is generated from new products? What do we see? Is there real momentum? Is there And if you overlay that and link that back to our tech hubs in these regions where we have them clearly that is what driving what is driving our new solutions. Woman investment standpoint. We try and make sure we've got our foot in the door and all of these new and emerging technologies. Cuz what we don't wanna do is play favourites One CARDINAL versus the other. We wanna make sure we're investing just appropriate amounts of money to have skin in the game, to know that if this thing has got legs to it, we wanna be at the inflection point for them to write out. In your tech hubs can you act like bond James Bond PERSON what are the queue movies and like the laboratories you walk in and they you know you sort of face off and clear the system and they serve to this Who can do that over again? One CARDINAL of them. No that's not me. Coming up how mastercard has embraced the brave new world of cryptocurrency with all its ups and downs. Tells me what advice he'd offer a CFO ORG just starting out in the job. I think it's important to stay calm. It's a border to recognize that change is going to happen. You can't fight change. This is bloomer. Imagine simply climbing a cable into space. The concept is known as the space elevator Not only could it significantly change how we leave planet earth But it could also completely transform humanities relationship with space. And there are scientists think we could have already built it We have the material. We have the technology. We have the lasers. We have the climbers. We have all of them. If a private entity wants to build it. Or a government It'll change society. We have no clue how colonizing in the space. How really spreading on the space. Really change our society over the next 50 to 200 years DATE . It'll be completely different. Do you see that The moment news breaks 24 hours TIME a day. Bloomberg PERSON . It's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure in the future that is now being reversed Like many of its counterparts and the payments and financial services industry MasterCard ORG has developed products and partnerships that bring cryptocurrencies into its networks. Payments and payment system perspective the the Players and and members that make up that ecosystem are really agnostic. To them, crypto is just another currency literally. Just another asset. At this point, Overall gravity contribution is still so small it's very early but if if I'm a hard company it's better to invest Companies for future revenue growth rate versus kind of sitting on the sidelines. Crypto ORG is a term that encompasses a number of different projects including central bank digital currencies and private sector stable coins also digital acids like bitcoin he's volatile valuations is susceptibility to fraud have raised plenty
Central Bank ORG digital currencies and private sector stable coins also digital acids like bitcoin he's volatile valuations is susceptibility to fraud have raised plenty of anxiety among investors Cards ORG long term plans to stay in the space haven't wavered. We're not really in the crypto hype of investing in our investing around do we like the fundamental technology in the promise that it brings to solve problems that have not been solved so if we see more revenue coming out of B to B solutions that leverage blockchain technology for example. Tokenize GPE bank deposits. You know, just to throw out one CARDINAL example. Across border payments, whatever it might be. In the crypto world we play the role as an on ram so people use MasterCard ORG called products to buy crypto. Are they incredible products so that's the on gram if people wanna spend money as in fear currency to buy crypto and react as the off ramp and the offer amp is when people want in cash should We help them actually gain access to be able to use their crypto balances everywhere master cuts accepted We engage with Central Banks on Central Bank ORG digital currencies. We engage with governments on how a policy could look like, how regulation could like, look like, Engage with the startup community and say come on in let's sit around the table in one CARDINAL of our tech hubs and we discuss What solution actually is needed by whom and how we can bring it together. They have the greatest idea but the greatest idea needs a path to scale. That's what we can bring. Is there a potential liability because of the volatility because of how Coin ORG and certain other cryptocurrencies have been painted. Is there any liability for Mastercard GPE ? Yeah. Well, too long as we follow our principles, we think we're in really good shape. And the principles we care deeply about our Stability as instability of the currency in question. Point number two CARDINAL it must meet consumer protection requirements Me the laws of the land. And this is not new news to us. We've done this in the space for the last 50 years DATE . For everything we've been working with regulated financial institutions on. And so which is why when we got into the space the first thing we did was to find principles. And we will keep abiding by the principles and what we do Yeah I feel happy because we're in the discussion Ecosystem 1 day it'll look like we'll be having done Many other spaces over years of of the past years DATE Such an era is a leader within a company that has the power and reach to shape ecosystems and he'll be making strategic and financial decisions that shape the business. I wanted to know what he sees when he Ahead. Opportunity for Mastercard in the next 10 years DATE that most excites you. Very sizable consumer payments opportunity Which we stand very well poised to actually capitalize on. This is the trend of the shift from cash to electronic forms of payment. If you think about it globally, there's still a ton QUANTITY of cash. Which remains to be electronified. And that that opportunity is huge. The second ORDINAL pillar for me is around we have identified over the past few years DATE a sizable total addressable market in what we call new payment flows bucket number three CARDINAL is around services it goes back to our insights and analytics are broad management capabilities Everything we are doing that space and then the last piece around you that works which is around open banking and digital light entity. What are some of the challenges for mastercard over the next 10 years DATE that keep you up at night TIME ? Plugged in on what's going on from a technology innovation standpoint and making sure we're leading from the front not turning our back to it and saying we're gonna walk in the other direction. We've got to engage with people who could potentially be Disinmediators competitors to let them know what value we can bring while they're executing on their strategy. So, that's number one CARDINAL . Number two CARDINAL is Look I mean the world is getting More into a regulatory environment where regulation regulators are playing a bigger role nationalism is playing a bigger role it's important for us to continue do everything we are doing by being local. It's important to be a global company but be deemed local and that's gonna be important for us to execute on. At the end of the day DATE , sitting in my role is this year four DATE . Strategy is great versions fantastic but what really matters is can you really deliver and execute and we've gotta stay focused on execution and that's what we do every day. What's the biggest change that you see your role having over the next 10 years DATE ? Honestly I'm not Bit.
Execution and that's what we do every day. What's the biggest change that you see a role having over the next 10 years DATE ? That's a really good question hey honestly I'm not The business of predicting that much as it relates to how it's gonna change what I can see happening is greater emphasis on making sure We're leading from the front on executing but also failing fast and that's where a CFO ORG can play a big role And by that I mean You're not always gonna win. There are things you're gonna do. Hopefully you get more right than wrong. But recognizing things which are not working out. And making sure you actually feel fast on them and get out of them. Because you can get you can fall in love with stuff. Keep doing it. Keep wasting resources. Don't only realise that it's not gonna pay off. And I think the emphasis around that is gonna only increase for that. Scapula resource environment. What advice would you give a CFO ORG today DATE ? Hey I think it's important to stay calm I think it's important to recognize that change is going to happen. You can't fight change What really matters is how you can get up and actually deal with that change. That's super important for a CFO ORG . Being really clear and crisp in your communications. The outside world wants to hear in very simple terms. What exactly this company stands for and why they should believe that you are a good investment. I noticed I've said nothing about financials and I said nothing about necessarily financial infrastructure and systems because I do believe as a CFO ORG . Those things are table sticks. You've gotta make sure that stuff happens. You gotta level technology. You gotta drive efficiency in the business. You gotta get the numbers right. You gotta have a good control in the moment. What's gonna call you apart is the is the other elements which I spoke If Mastercard GPE can meet ambitious goals for growth in its core business Build on strategies that are taking payments to the next level such in Mary will deserve a lot of the credit. I'm Lisa Abramoids PERSON . This is Bloomberg PERSON . So is there more pressure when you're trying to win a basketball championship? Then when you're trying to please investors where's the greater pressure? Trying to win a championship. It's hard because a lot of like when you invest and you know this when you're investing You can control a lot more things You know, on a basketball court, you can't control whether somebody's gonna make a shot, you've gotta get lucky, and what's the greater pleasure making five CARDINAL times your money on a distressed debt investment or winning the NBA ORG championship? They're both fabulous I I I wish I could do one CARDINAL each year that would be great but Think there's a great feeling in being right on an investment that you've done a tremendous amount of work and you've made money for your clients which I think is great. I think winning a championship It's a very surreal feeling because there's a whole city or state that is actually behind you You know, we had 70 1000 CARDINAL people at the finals and we had them all outside. It's 17 1000 CARDINAL in stands. And then literally like 60 1000 CARDINAL people outside And when we won like just the joy that you had brought to the city was phenomenal. We make it very transparent to the shopper before they accept an order. What's the order? It's gonna look like, how much we're gonna pay them, and how much like the consumer is paying them. And so they can decide whether they take an order or was else it refuse it. And that's a kind of flexibility, lot of shoppers really Value ORG is a kind of transparency that they want. Are you seeing a labor shortage right now? And what are you doing to to combat that? It's different in different places. All demographic of shoppers is Different ORG from food delivery and rate sharing. We have 70% PERCENT women and half CARDINAL of them moms. And that's because a lot of the job on Instagram NORP is very different and just being in the car with strangers. It's about
We have 70% PERCENT women and half CARDINAL of them moms and that's because a lot of the job at Instacart ORG is very different and just being in the call with strangers it's about like going to the store doing a good job of customer service of really picking the right products for the consumer and we are seeing that being very appealing to women Markets are preparing to close but the day is not over yet. About 45% PERCENT . Global asset market. Bitcoin ain't buying along today DATE it's gonna be short term China GPE slows the fed ORG worries and former President Trump PERSON strikes back. I'm David Weston PERSON . This week DATE 's special contributor Larry Summers PERSON of Harvard ORG on where the housing market is headed. We're looking towards Zombie GPE companies. Money that's being spent to keep zombie companies afloat is money that could be more productively deployed elsewhere. It was a week DATE of signals. Some subtle and some not. China GPE sent an unmistakable signal that it's economy is slowing. Something that a 10 CARDINAL basis point rate cut doesn't seem likely to fix. She is confronting a number of both you know short term and long term challenges. Right now, I probably the number one CARDINAL thing is the poor performance of the economy. Former President Trump PERSON kept up his attack on Republicans NORP who supported his impeachment so Congressman Liz Chaney PERSON of Wyoming said she wouldn't stop even after she was soundly beaten in her primary. I have said since January 6 DATE that i will do whatever it takes to ensure Donald Trump PERSON is never again anywhere near the oval office and I mean it. And there was nothing subtle about the inflation signal we got out of Great Britain GPE coming in over 10% PERCENT and apparently headed even higher. I'd go to the UK GPE where you're seeing an explosive move higher in UK GPE guilt yields Tom PERSON and I don't think I'm overdoing it using that language Becoming entrenched. Reading the minutes TIME you have to feel that this is a sort of a doveish lead and it supports chairman J Powell PERSON 's tone at the news conference following the June 27 DATE meeting beneficials noted Some parts of the economy notably housing. We're starting to slow as a result of higher interest rates. And if you wanted confirmation of just how big is those fed minutes were just take a look at the markets this week DATE with the S and P Climbing nicely early in the week DATE only to plunge on Friday DATE ending up down two CARDINAL . Six% GPE help no doubt I concerned about bonds with the yield
Climbing nicely early in the week DATE only to plunge on Friday DATE ending up down two CARDINAL . Six% GPE help no doubt by concern Just under three% 297 CARDINAL . To help us understand what the market may be trying to tell us welcome to Bob Prince PERSON he's co chief investment officer for Bridgewater Associates ORG and Ed PERSON Hyman chair of Evercore ISI and vice chair of Evercore Partners And let me start with you. You follow the economy and what's going on with the economy. We've talked about the markets. We've talked about the fed ORG . What's the economy telling us? Well it kinda makes it two CARDINAL parts to it obviously one CARDINAL part is what real GDP is or auto sales then there's inflation An inflation is by far the more important part right now but on the first ORDINAL part the economy is doing okay as you know we serve a companies And our retail survey dropped sharply this week DATE but still pretty elevated Housing is really getting hit But on balancing economy is doing okay I think it's probably going two CARDINAL or three% but headed to one% Bank ORG loans came out this afternoon TIME and they're up 11% PERCENT now And retail sales this week DATE we're you know pretty decent On inflation which is much more important I I'm pretty convinced that inflation is slowing Of oil prices came down gasoline prices came down And In the weeds used car prices dropped about three% GPE and the latest month DATE And we survey Retailers pricing power that's now plunging you've heard the stories about the inventory is being high and we have been tracking that for a long time it's now really coming down. But the most important part and we don't get my state on this or wages. And obviously the labor markets are very tight But they had from the conference board this week DATE A measure of CEO conference was almost a record low. And another survey That showed 80% PERCENT of workers We're concerned about losing their job. Go figure that But we serve a employment agencies every week DATE And ask him among other things about wage pressure and that's now pretty clearly hooked down So I think you're beginning to see some moderation in wages on top of you know prices now cooling An economies calling So Bob Ed PERSON sees inflation started to come down questions how fast is coming down but starting to How do you see it? And is it coming down enough and fast enough so the fed ORG will not have to go much further in redhawks? It's definitely on the down but the question is where is it settle out The markets are discounting. The markets are discounting two and a half DATE And you know, we're coming down from six CARDINAL . Or higher on the core, right? So, but there are really two CARDINAL big imbalances in the economy right now that are need to be resolved through this tightening cycle and we're we're still in this tightening cycle It's it's too early to really see the effects. It hasn't been that long to see the effects and so chances are you're gonna get more that weakness as you as you go along. But there are there are two CARDINAL big inbounds in the economy right now that that they're gonna have to be All one is the level of nominal spending in relation to the to the output capacity of labor Over the past year DATE , nominal spending is up 10% PERCENT . And incomes are up 10% PERCENT , and if incomes are up 10% PERCENT , that gets spent and you get more spending at 10% PERCENT . You gotta bring incomes down And if incomes are growing by 10% PERCENT but labor can only produce goods at the rate of four%. You get a six% NORP inflation rate And that's the basic that's the first imbalance and that's the basic cause of the inflation that we have right now. It's really not the supply chain. It's just too much spending. Which came from the monetization of government data and the fiscal stimulation. The second ORDINAL imbalance is the level of
James PERSON it's just too much spending Which came from the monetization of government data and the fiscal stimulation. The second ORDINAL imbalance is the level of nominal spending in relation to bonyards. So nominal spending is even higher above bonus than it is above output. It's, you know, seven, seven%, above bonus. So, it's a highest in 60 years DATE . So, if, if, if spending, if people's incomes are growing Well beyond bony yields it's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit and so that the the credit numbers that is referring to loans up 11 CARDINAL You know that's a backstop on the economy and spending. So so it's it's the high level of spending an incoming relation to interest rates and and labor labor production. And it's the availability of credit to sustain that and it and that'll means that you have Get a tightening reminder policy and it sustained tightening amountary policy to bring about an equal librarian. Where are with wages and that wage price spiral because in fact if we are gonna have continued inflation people are gonna wanna make more money they're gonna go to their bosses and say you need to pay me more Well Now, I really bearish. So, they're not gonna be happy. If you have and see you on, but your Bob PERSON and I think about the same way. But money growth has been slowing for about 18 months DATE . We'll talk about that because it was growing gangbusters for a long time. Right. But you're saying it's turned around. So, in the conventional way, you had the checks you had the quantity of easing in low interest rate And some money growth got up to almost 30% PERCENT Which is obviously extremely fast and that's why you have the strong number growth. Now, with figures I got this afternoon TIME on bank deposits, money growth is well less than five%. And so we've set up The mechanism for this novel growth which is way too fast to slow down but that's what has to happen and obviously, this is a really interesting thing. If it slows down Does it come out of real growth or at a prices? If you have your 10% PERCENT normal growth which everybody can understand I think Right now it's about one% ORG real and a nine% price right and if you go to say five% nominal Of what's the mix then? Right Should that fix the inflation problem or at least take us a long way to fix it. Your total in an economy they're they're total sources of funds is your sources for spending and there are three CARDINAL sources there's money There's credit and there's income, right? And so, when you get the tightening of monitor policy, they're contracting money and that's absolutely right. The first ORDINAL effect of a contraction in money is on asset markets Because if you think about the printing of money by the by the fattering of the central bank they print the money and then they go buy bonds or they print the money and that money then goes into stocks so that money had more most directly effects of financial markets Credit more goes into spending, right? Because, you know, you take out an auto loan to buy a car, you don't take out an auto loan to buy a bond and the fed ORG doesn't print money to buy a car, they print money to buy financial assets. So, so what you have is a push pull The contraction in liquidity from the central bank is a drag on the financial markets While they're expansion of credit And so you've got you got that work in both directions right now. To me at least credits going up that sounds like it's good it's gonna spur growth but that makes it sound like Actually gonna make the implementation There's a fed ORG need the credit to come in. So, probably. So, in my view of it, which is a straight Milton Freeman PERSON take of it Of those three CARDINAL pieces that Bob PERSON point out The first ORDINAL one is where it starts.
Milton Freeman PERSON Take of it of those three CARDINAL pieces that Bob PERSON pointed out The first ORDINAL one is where it starts Is the money growth And I track global short rates. It's a global economy and they've a higher impact on the use economy than fed funds and they've been going up for about 18 months DATE . Same time that money grows has been slowing. So, I think we're pretty deep in this and we had a pretty good drop in the stock market to your point And and now inflation's coming down the markets are Beginning ORG to think that this is Introduction to the next chapter That the next peel of the onion. So, the money is the first ORDINAL thing, right? The but what that and money is the first thing but it needs to get to the second ORDINAL thing and the third ORDINAL thing to have the permanent effects, right? Which means Have to be in a tightening cycle for long enough for that to happen, right? And we've been in a tightening cycle for how many weeks DATE ? Right? 18 months DATE . Exactly. You have to be alone enough, right? And so, you know, as we look forward Think that there's there's gonna be it's too early to tell really how this plays out in terms of whether it's wheat growth or high inflation or which one but You're probably gonna get some combination of wheat growth high inflation and rising interest rates And all three CARDINAL of those are are rough on asset prices The mix is gonna be determined mostly by how aggressively the fed ORG And other central banks tighten and and stay tight if they have to pay the price of a downturn. Turn next. So, what is really for investors? So, it's too soon to tell. What do we do in the meantime? Or waiting for those answers. Bob Prince PERSON and Edmond PERSON will be back with us for more Wall St Week after the break. Tag on the product may read made in the USA GPE but the sign on Often PERSON says made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG such a Nadella IBM's ORG Arvin Krishna PERSON my current technology Sanjay Mayhotra PERSON and that's just Added the cheap executives of Adobe ORG , Deloitte ORG , Gap, VMware ORG , and that doesn' Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Coastal ORG points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up about Reforce of the immigrants receiving coveted H one CARDINAL B visas for the US GPE and it's New construction contracts faltered and while unemployment actually went down more significant was back to back monthly DATE declines and paying jobs. The bottom line seem to be that the economy was beginning to move forward but with many a lagging part.
Friends and pain jobs The bottom line seem to be that the economy was beginning to move forward but with many are lagging part And overall at a pace that would embarrass the tortoise. That was Lewis Ruckhazer PERSON on Wall St wave back in August of 1991 DATE when the United States GPE had just come off of a wrongly mild and short recession the number one CARDINAL song if your murder was Brian Adams PERSON everything I do I do it for you and the top movie was terminated too judgment day still with her Bob Prince of Bridgewater and Ed PERSON Hyman if ever course so it's a Different world today Bob PERSON . For example, on the job situation, we still have a pretty robust jobs economy but for everything we discussed before about the uncertainty of where we are in the tightening cycle, what comes next? What does that say to an investor? Well right now we're in that in between stage right now right so you if you if you go back just to not too many months It became evident that we had a self sustained inflation that there was gonna be a tight near monetary policy. The market's priced that in yields went up You got to take me in a policy it's still happening It's not over Mark PERSON has got a little bit excited about the dip in some of the inflation. They started by down that yield. But we've already given up half CARDINAL of the yield rise that occurred in that actually means the fed ORG needs to do more than if the yields had stayed up where they were, right? Including equity. So, So, we're still in this thing. We're still in this tightening cycle And like I said there there are really there's gonna be a mixture of three CARDINAL things and you don't know what the mix is yet cuz it's too early to tell but you're gonna get some mixture of wheat growth high inflation and rising interest rates. The more the interest rates rise, the more it's the wheat growth, Let's see interest rate rise the more it's the high inflation Takes the foot off the brake you're gonna that that inflation improvement's gonna go away and you're gonna you know they're gonna favor growth so you don't know which which how they're gonna play it quite yet. So what we try to do in this kind of environment is is maintain some balance, right? Diversification obviously. Don't Too heavily committed to anyone direction but also even within the equity market you know structure in equity portfolios that have AA cash flow and balance sheet base under them. So that if if the tightening is very aggressive that there's a strong enough Sheet to hold that up to to sustain their their position in the market so a sustain a positive cash flow and I think that they companies that are you have a lot of debt in relation to enterprise value or vulnerable profit margins that sort of thing you know are they are the type that are most vulnerable for that So it sounds like an awful lot hinges on the fed ORG . Surprise, surprise. Jackson Hole GPE coming up next week DATE , okay? A lot of people weren't paying attention to Jay Powell PERSON , weighs the same. Remember, last year DATE , at this event, he was talking about transitory still. That doesn't work so well this year DATE , right? So, how much guidance can the Fed ORG give us what exactly where they're heading? Just talking about. Well, it's hard to hard to know. I do think we're gonna get a financial crisis, some where, somewhere pretty soon It's always been part of the of the tightening cycle But like you point out David, yo, last year DATE , it was really about transitory. He had five CARDINAL Went through five CARDINAL different things that would prove transitory And I I personally think the fit is now on the other side of the wrong foot. You know, now they're doing the entrenched and you know, a year ago DATE , I thought buying us to go to five% and fed funds go to five% and I'm not quite sure what's happened but Mardi Gras PERSON did flow dramatically And combine prices here and come down dramatically I'm saying pricing power coming down and so I think we've made a lot more progress on inflation than I expected and and that's why the market was going up until today DATE but that's that's if inflation keeps coming down Then the market is gonna appreciate that. I don't understand Bob PERSON we heard why Ed PERSON thinks the feds job maybe he's got a bit easier actually with some of the things that have happened but financial conditions Have not tightened. Actually, if anything, get that in someone looser. That makes the fed ORG job harder, does it not?
Text the first ORDINAL job harder is it now? Literally the first quarter DATE that markets were doing the Fed ORG 's job entirely. Yeah. In the fed ORG joined in And once the Fed ORG joined in and the market saw some you know positive signs of inflation you know they actually pull back and so bonus came back down equity yields you know came back down And so You know, that as you said about half CARDINAL of the tightening that the markets were applying has been retracted. If if yields had stayed where they were It would be that much less that the Fed ORG needs to do but the fact that the yields have actually dropped some and can kinda give him back some of the work that they were doing. It's that much more that the Fed ORG needs to do. And so, I think, you know, it's Ed PERSON referred to last that you know you you raised it and then you know we About last year's DATE Jackson Holstein ORG They were clearly wrong about transitory inflation. If if you actually look at the indicators that they follow and they tend to be lagging indicators. I haven't heard yet an explanation about how they think inflation, why they think there is an inflation, why they think that that was wrong, and I think that that causes some cause you to question How well this this process is gonna be managed to be very tricky. Well, that's a really powerful point I think. Explain to us what went wrong and why they're not gonna do a mistake again for us to really believe in this time. Oh, be helpful. But you know, from As you can see What they missed was that fiscal stimulus quantitative easing led to a 30% PERCENT increase in the money supply and that did it If you look back at that Jackson PERSON home they completely missed that. Now money growth is plunging and commit prices are coming down. All sorts of signs that are early signs and so the job's not over by any means. But there's progress If you look back like pickate the 70s when inflation peaked The stock market started to respond to that. When you had a very high inflation period, like we have now. Do you agree with Ed PERSON that in all likely we'll have some sort of financial crisis? That's what happening, happens in serious tight Odds are pretty good yeah Yeah I mean we haven't had enough tightening down to really have that Odds are good. Yeah. I mean, we haven't had the downturn yet. If there's gonna be a downturn, it hasn't happened yet. It's gonna be hard to bring inflation down. Are you gonna bring nominal spending down from 10% PERCENT to five% Without a significant Incredible you need to slow credit growth by about half CARDINAL money growth is slowed but you need to slow credit growth in half CARDINAL but it's still rising you're gonna have to you're gonna have to hold interest rates up enough and that's when thing that's when bad things happen Day. This is not a bad thing. It's a real treat. They had the two CARDINAL of you here in Wall St. We really thank you so much. That is Ed Himan PERSON . I've ever caught and Bob Prince PERSON of Bridgewater. Coming up, we'll take a look at what's coming up next week DATE on global Wall St. That's next on Wall St on Bloomberg GPE . David Weston PERSON . Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio
Certain game that we haven't had to deal with. Television and radio. Is that communicating via video is not a bad that we are using in all aspects of our lives for work or learning for communicating for staying in touch. This is Wall St Week. I'm David Weston PERSON . Let's take a Coming up next week DATE on Global Wall St WORK_OF_ART starting with Julia Sally PERSON in Singapore GPE . Thanks David after unexpected cuts to the medium term lending facility in China GPE we'll be looking to see if the banks follow suit with a cut in the loan prime rate also on the Slater PERSON interest rate decisions from Central Banks ORG in South Korea GPE and Indonesia GPE inflation figures from Singapore GPE and Hong Kong GPE trade data Earnings across the region include Qantas Petro ORG China GPE and food delivery giant meat one CARDINAL Bloomberg PERSON intelligence forecast Chinese NORP companies may be set to report their worst earnings performance in 2 years DATE The focus in Europe LOC for the coming week DATE will be the energy crisis in Europe LOC and we had a lot of developments in the week DATE prior you had the Ryan PERSON dropping to levels that made it untenable to have shipments across it you had record high energy prices in France GPE and Germany GPE you also had not gaps prices reaching new records as So, as we head into this week DATE , the question is going to be how this impact industry, how it impact individuals, will there be more demand rationing and demand destruction. We've already seen some of it with different industry having to shut down power plants but how much worse can it get and what will be the impact on the economy? Big weekend economics we have the jackson wholesale coming up and I think our Bloomberg GPE economics team really focus to hear some hawkish comments from chairman Jay Powell PERSON reassuring the markets there was no pivot and that we are still to go in September DATE for 50 or CARDINAL 75 CARDINAL basis points away from economics Just some of the fundamentals as well. Big week DATE for earnings too. Zoom of course the video conferencing company. How do they sort of continue to grow in the face that further reopening trade maybe less demand for that product? Finally, Peloton ORG . We've heard a lot from this company about as Some of the bikes at home, a lot of cost cutting initiatives, all the help sort of get that company back on track. That too will be a key focus for us next week DATE . Thanks to Juliet Sally PERSON , Danny Burger PERSON , and Taylor Rigg PERSON . Well some of those who maybe caught are those so called zombie companies who've loaded up on debt when it was cheap. International finance. That's next on Wall St Week on Bloomberg PERSON . When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution
When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trait about 80 and 90% PERCENT of all the world's goods are transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. About three% of all the worlds is huge, true mission Come from shipping. Output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement? To help reduce the emissions from these well stocked maritime behemoths. It was nice while it lasted. All that support from the fed ORG from oh interest rates. More directly These lending powers to an unprecedented extent enabled in large part by the financial backing from the congress ORG and the treasury. We will continue to use these powers forcefully, proactively, and aggressively until we're confident that we are solidly on the road to recovery. All of which allowed companies to borrow as much as they wanted which was worrying to rust Of Black Rock LOC as much as 4 years ago DATE . The 800 CARDINAL lb gorilla which eventually we're all gonna have to question is whether or not this build up in corporate leverage which we've seen over the past 3 or 4 years DATE . Is that sustainable? But now those happy days DATE are over. As the Fed ORG has reversed course and says Early next year DATE when inflation is very likely going to be well well in excess of our target I just think it's not realistic where does that leave all those companies who borrowed so much well at least some of them are so called zom No not those zombies companies that don't generate enough cash to pay their debt and that leads economists like Neuro Robine ORG to say we're going to see some of them fail which may just be what we need to get to the other side Where Zombies are gonna collapse. And to take us to the strange and exotic world of zombie companies who have enough sonia gibbs she's managing director and headed sustainable finance at the institute of international finance ORG so Sonia PERSON thank you so much for joining us on Wall St Week let me start with those Zombie GPE company and how many of them are there out there First ORDINAL of all, to take a step back. What you need to think about is that over the past 10 or 15 years DATE , global debt levels have skyrocketed. We've had very low interest rates and for example, non-financial corporate debt around the world is now close to 100% PERCENT of GDP. And that's more than double what it was Okay to go. So that's a very worrying backdrop. And so what we mean by zombie companies is a company that essentially has to borrow to keep going. They are highly leveraged. They're not growing very fast. They're revenues are not up to par. And at the moment they face a very difficult situation you've got higher input cost so your commodity prices are higher wages are rising at the same time you don't earn enough revenue to cover all of these higher costs and your debt service so if you have a.
Hey Same time Earn ORG enough revenue to cover all of these higher costs and your debt service. So, if you have a ratio of revenues to interest costs that's one CARDINAL or less, if you can barely cover your debt service cost. We call you a zombie company and it's a very good name. It's very evocative. And for how many it means difficult to calculate right because for a lot of firms that for example art publicly listed the information might be less available it might be smaller non-public companies The Federal Reserve ORG estimates that between five and CARDINAL 10% PERCENT of US GPE firms fall into this category. And it's also important to remember that this is not a static world. It's not once a zombie, always a zombie. Conditions change and in fact, becoming a zombie company is a little bit cyclical. In the sense that when times are good, maybe interest rates are low, growth is high, maybe you're not a zombie. But then, you know, bad things happen. Pandemics happen. Shocks happen. Interest rates go up. And a company that was formerly doing reasonably well Might suddenly fall into the zombie category. So you mentioned the overall debt load it's true certainly in the United States GPE and not just in United States GPE and part because interest rates are so low there's some very very successful healthy companies that load it up on debt cuz it was so cheap but and whenever we've talked about this risk in the last few years DATE I said don't worry as long as interest rates are low we're fine it looks like those days maybe on their way We're gonna have higher interest rates. So, what kind of pressure is that put on these zombie companies? Well, I think it's a good analogy, right? It's all fine until it's not and so you've had a kind of a confluence of factors that have hit. Pretty much at the same time, you had a pandemic which hit growth. You had commodity price shock, you have rising inflation, you have Interest rates and you also have firms who's who's business models. For example, have been entirely changed by the pandemic. I mean, amongst the list of zombie companies you might find a company like we work. You know, a company that has been very successful but at the same time, the pandemic has changed a lot of things for that for that company. Carnival cruise lines. There's another good example of a type of company who's now in the zombie category or some of the meme stocks. You know, AMC ORG , your game stop. So, these are really household names and I think that the difficulty is at a point in time when you've got wages rising, when you have higher input costs. These firms may Be able to borrow as much as they need to borrow to keep afloat. Tend to find zombie companies concentrate in certain sectors or in certain size corporations? I think it's fair to say that the the sectors that are worsed off in terms of percentage of zombie firms are probably in manufacturing and in retail and retail of courses industry that's undergoing secular change over the long term as we move to sort of more online no less brick and mortar think there there are underlying structural issues there and in Sector in any case but I think some of the companies that are hardest hit tend to be smaller firms and if you think about a small company, there's sort of inherently faced greater credit risks than some of the larger, better established companies that have long standing histories and track records in borrowing. They're, you know Familiar to investors smaller companies have a harder time accessing funds especially when when borrowing conditions are are difficult and with some of these companies having fallen on hard times during the pandemic you know there are estimates that suggested in some cases as much as 25 30% PERCENT of the small Companies especially if you include unlisted companies could be falling into this sort of zombie trap I wonder saying about the larger effects on the economy. Obviously, we don't wish ill for any corporation but there's gonna be a lot of stress put on a lot of the companies you're describing right now. Ain't so far is that all gets sorted out to use a eufacium perhaps. Is there some benefit for the economy and redeploying the capital they represent into things that might be more productive than their I think we might wanna think about this in a short term and a long term context. So in this short term It is very helpful for the economy to keep these companies afloat and you could think of the example of Japan GPE here
Context. So in this short term It is very helpful for the economy to keep these companies afloat and you could think of the example of Japan GPE here which is spend over 800 1 billion US dollars MONEY since the pandemic hit to support its companies so you avoid bankruptcy, you keep people employed, you keep these company afloat, but there Longer term cost to be paid for that because when you think about it Money that's being spent to keep zombie companies afloat Is money that could be more productively deployed elsewhere. You could put it into capital spending. You could put it into infrastructure. You could put it in a new industry. It's new technology maybe. In the ESG world or green technology that can really deliver a boost to productivity and growth. So it's kind of a foregone Energy ORG in that sense. At the same time for the reason you describe and the example of Japan GPE is a good one. It strikes me. There are political consequences of letting zombie companies go bally up. You know that the politics of these things are are always difficult, right? In one CARDINAL of the the conclusion is that you can come to is it if you have a high proportion of of zombie companies if you have companies that you're worried about keeping a float there's political pressure to keep that going. The more that borrowing cost rise, the more the interest rate rise, the harder time these companies will have keeping going. So if you're in a world where inflation is rising and you have central banks having to make a very difficult balance Controlling inflation and supporting growth which can involve supporting some of these less profitable companies. You know, it's a it's a it's a rock Place. You know, where do you where do you draw the line? You if in fact the Fed ORG could be held responsible for this money as I'll be company and maybe it's not what they're intent but it certainly was a consequence of extraordinary low interest rates for a long time. For everything really but certainly it was an inadvertent consequence of of low interest rates. So I mean if you think of the the many many years when we had low and in some countries even negative interest rates there were warnings sounded The time. There are risks to financial stability. There are risks to long-term growth. It's going to stoke inflation. It's going to distort financial markets. Is this store asset valuations? And in fact you can think of zombie companies as a type of distorted asset valuation right because accompanying a bit cannot generate enough revenue to support its debt service and it's running costs arguably is trading at an inflated valuation because it can continue to borrow at low rates so you Sort PERSON of put it on the backs of central banks but it's it's certainly an inadvertent consequence of something that had to be done to keep growth going during the the after the financial crisis. Sonia GPE , thank you so much for that. Tour of the exotic world of zombie companies. That's Sonia Gibbs PERSON . She is from the Institute of International Finance ORG . Pleasure to be here. Larry Summers PERSON of Harvard ORG . This is Wall St Week on Bloomberg PERSON It is crucially important and I think we'd move from this attitude from it's an indulgence a waste of time almost an illness that needs a cure. For something as universally important to human life Mystery LOC surrounding its necessity and utility have only just been recently uncovered Discoveries PRODUCT were in the 1970 DATE 's or 1980 DATE 's and so it makes that a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going from
We're in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our understanding. It's easy to memorize things that makes you smart. It can spit back a lot of back. But if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what you bring figures out while you're sleeping. This is Walsh St. I'm David West PERSON and we're gonna wrap up the week DATE once again with our special contributor, Larry Summers PERSON of Harvard ORG . Larry PERSON , thanks so much for being back with us. So, let's start with those fed minutes. Everybody was waiting for eagerly and they Markets didn't know quite what to do with them what did you make out of those minutes They confirmed what I suspected Which was that the fed ORG doesn't know where it is That the world is very ambiguous at this point And A meeting or a very poor way to convey Collective Look PERSON the fed ORG has a fundamental problem About which it is not yet willing to be realistic And that is that it is exceedingly unlikely That inflation can be brought down to target levels Without a substantial increase in unemployment they To be very concerned about unemployment and about inflation and the reality is that it's probably not so realistic to think that they're Get inflation all the way down without getting unemployment up They don't wanna acknowledge that and that forces a certain confusion Into all of their Understand FAC why they don't want to acknowledge that part of the problem is they've taken on an excessive obligation To communicate. So, I think there are a very very difficult situation. I don't know to what extent they're gonna choose to take the pain that is ahead They're gonna choose to take it on the Side Remains to be seen. I suspect in some ultimate sense, they don't really know. Either which way it's going to go, it's gotta worry them. That Financial conditions are now When in the middle of a tightening cycle Conditions were substantially loosening That has to make a central bank. Nervous. David there's one CARDINAL other aspect of this situation that I think is very important and under recognized What's happening with Russia GPE and Ukraine GPE what's happening with droughts all of it they don't really fully internalize that oil prices and wheat prices have both come down substantially and are predicted Come down substantially in the future. Concepts of core inflation When headline inflation was higher than core inflation Can't stop doing that.
To focus on concepts of core inflation When headline inflation was higher than core inflation Can't stop doing that Line inflation is lower I inflation I don't see it with respect to the wage numbers I don't see it with respect to the median or trimmed mean Measures Substantial Inflation challenge ahead of us. One of the things that fed ORG emphasize in the minutes. Besides really being concerned about inflation expectations. On the other side of that was a softening housing market. Something you referred to last week DATE on this program. Give us your take of the housing market. Some people say we're in a housing recession right now. I think you have to distinguish Movers NORP from stairs or to put a differently you have to Look at you have to think about what the right way to look at rents is. Here's what's true What's true is that last year People who were signing new leases We're paying 15 or 20% PERCENT more than they had a year ago DATE . Nothing like that Fatty into The consumer pricing decks or the feds preferred measures a PCE ORG index All the fed through Small fraction of people who saw their rents change And a constant rent for everybody else. What that means is that down the road like now You're seeing inflation Substantial increases and so we're gonna see Housing price inflation in the measures of inflation that are used For another 6 to 9 months DATE that's a different thing than what builders are responding to builders aren't responding to that builders are responding to what they think the price of houses will be a year from now DATE and that come down and Building and that's what happens when interest rates go when interest rates go up in some ways it makes sense if we're gonna have It's better to have a decline in something where we've already got a huge stock of it and it's only the new flow that's being affected Van in Continuous basis That doesn't have any duration to it But I do think we're Towards In the future With respect to housing and I'm sure they'll be differential impacts in different parts of the country as I say my best guess is that we will have a meaningful recession sometime in the next 2 years DATE and if so I think Considerably more pain with respect to housing ahead. Larry PERSON , we're gonna talk about softness and slowing. We certainly saw that in numbers coming out of China GPE at the beginning of this week DATE . And I wonder what you make of the Chinese NORP problems as we know there are three CARDINAL or four CARDINAL of them interlocked there. But on the other Is it possible that we'll give a little at least a little relief to the fed ORG here on slowing inflation Probably well it it goes back to the issue we discussed a few minutes ago David TIME about oil prices and grain prices Main ORG impact of Chinese NORP slowing is likely to be on commodity prices and there's a question as to
Rain prices Main impact of Chinese NORP swelling Likely to be How much weight those should be given as we think about our inflation rate in this country but it probably is a positive I think the larger questions involve Responding to these Increasingly profound events in China GPE It was taken as almost axiamatic six Or a year ago DATE that at some point the Chinese NORP economy would surpass the American NORP economy in terms of total GDP at market exchange rates that's now much less clear than it previously was and I think you're seeing all kinds of challenges Communist NORP party involvement in a wider range of enterprises there's the demo Traffic ORG challenge Have been saying for some time That I think people are gonna look back at some of the economic forecasts about China GPE in 2020 DATE in the same way they looked back Forecast PERSON for Russia GPE that were made in 1960 DATE or for Japan GPE that were made in 1990 DATE . Last one here toward the end of the week DATE turkey central bank made a move to try to combat inflation by you won't believe this cutting the interest rate from 14 to 13% PERCENT cuz of course it's President Erdogan PERSON 's theory of interest rates and in What did you make of that? President Erdogan PERSON is the world's first ORDINAL Modern monetary theorist. He is putting modern monetary theory into effect So far it hasn't worked very well For him Or for the Turkish NORP people I don't think that's going to turn around And I hope that the misguided accolades of modern monetary theory in the United States GPE are watching. Okay Lori thank you so very much that's Larry Summersville Harvard PERSON our very special contributor here on Wall St week. Coming up, we all know getting older makes us slower and grayer but can also make us richer. That's next on Wall St Week on Bloomberg Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE this group has broken by Bloomberg PERSON 's Amanda Crypto You have a world of young people. That want their own financial system And their own culture. And it is very powerful. And I'm a big believer in it. Finally, one CARDINAL more thought. Old.
Finally, one CARDINAL more thought. Getting old. One CARDINAL thing that we all have to do None of us wants to think about it And sometimes seems like some of the oldest among us may be the deepest in denial where there is rock musicians like Jagger PERSON still performing live on stage at the age of 79 DATE or sir Paul McCartney PERSON who's still going strong way past that age of 64 he wants worried about or our political leaders Or nearing their 80s DATE like President Biden PERSON and Mitch PERSON And Nancy Pelosi PERSON who snapped back at a reporter 10 years ago DATE when asked a question. Colleagues privately say that you're just getting to stay on And who can forget President Ronald Reagan PERSON who in 1984 DATE provoke the age old or should I say old age question after stum Through his previous debate with democratic NORP challenger Walter Mandale PERSON . Only to come back with this zinger. I will not make age an issue of this campaign. I am not going to exploit Political purposes. My opponents, youth, and inexperience. The world of business and finance is an entirely immune from this but by Warren Buffett PERSON who at 91 CARDINAL shows no signs of stepping down and told our own David Rubinstein PERSON his goal is to keep Who I like to be the oldest man that ever lived actually And who knows maybe Really just get older. We get better. Was hoping that that may just be true. We now have a concrete, provable example, coming from the world of golf, where a journey and tour professional who'd struggle for years DATE , suddenly became a star, simply by turning 50 CARDINAL Into the older player PGA tour champions league To be sure Stephen Alka PERSON from New Zealand GPE happened to be at the very top of his game when his birthday came around but according to the Wall St Journal ORG adding that extra year has let him In 1 year DATE it's $ three MONEY . 5 million CARDINAL which is more than he made in all the rest of his career put together And if it keeps sinking extra long putts like he did to win the Boeing ORG Classic PRODUCT David Weston PERSON this is Bloomberg PERSON see you next week DATE . A lot of the satellites have proposal systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver their machines yeah we offer a collision avoidance survey it's a subscription service we'll send you an alert 7 days in advance. Companies have been doing that for decades DATE moving satellites around but it's it's sort of like a harder problem.
Companies have been doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. Just because we've installed so much more hardware in the space. You have a big collision it creates a cloudy and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the light period of the collisions going up Hey Hi I'm Shanali Basic PERSON and you're watching the next big risk in a year DATE that was marked by Russia GPE 's warn Ukraine GPE soaring inflation around the world and torn supply chains market sea risks everywhere but these Finance ORG are looking further out for the next risks. I think that the promise of the American NORP dream has to be defined Hey And almost no momenta. You're gonna see nation states look internally and make sure that they have the ability To support themselves. Economic growth and to defend the labor force these are the next big risks There are always issues and for me there are three CARDINAL in particular that I'm focused on intermediate and longer term what has to do with our population More than a century DATE one of the pieces of the secret sauce United States GPE growth has been the fact that we've had strong population growth and strong gains in labor force and I'm concerned about that right now The second ORDINAL area that I look at has to do with investment. For more than 150 years DATE , the United States GPE has been one of the global leaders in long term investment both government investment and infrastructure and also corporate investment in private capital. And what we're seeing is Will you fall in short over the last decade DATE or two CARDINAL and we need to be looking at that as well and the third ORDINAL piece that I'm increasingly concerned about has to do with the role of government The economy and let me be very careful in how I express this. I believe in markets. I believe that capitalism has worked well in the United States GPE but not unfettered capitalism. We have benefited from good regulation. It's not always the best but when we try Protect As a nation. We tend to do much better. We look at some areas in which May DATE now be coming under some risk and I think that would actually damage long-term economic growth of the United States GPE . What about the makeup of the United States GPE is creating a more complicated future for In the country. Reasons the US GPE economy has outperformed the economy of other develop nations for the last 30 or 40 years DATE has been that we've had faster late before growth you know it's a very simple arithmetic equation Workers ORG , more GDP. Immigration by the way that's not new this has been a nation of immigrants since it's founding if we're not viewed as welcoming to talent from around the world we'll have a problem going In terms of how long term growth. When we look at the information from individual
Is welcoming to talent from around the world we'll have a problem going forward in terms of how long term growth when we look at the information from individual companies and industries we see that there is a labor shortage at all ends we all know for example that right now one of the reasons behind the In service inflation has to do with an inadequate number of workers at airports In hotels, in restaurants, and so on The area that I spend a lot of my time looking at is the other end as well do we have enough new scientist do we have enough new engineers do we have enough new doctors and the answer is no we don't keep in mind you have to also create a pipeline Right? The students who are now K through 12 CARDINAL are the future pipeline of scientist and engineers and doctors and we're not doing a very good job with them right now. In terms of their skills. Is this all kind of boiled down to Erosion of the promise of the American NORP dream. I think that the promise of the American NORP dream has to be defined and that is Every generation doing better than the previous generation. Do they have the To do better than their parents did And what we have seen over the last 30 years DATE or so maybe 40 DATE is that median household income in the United States GPE adjusted for inflation has not risen but that is a problem I think it creates a sense of political discord it creates a sense of unease People in the United States GPE , and it is worrisome. Because we have to think about how do we get out of this? Well, one CARDINAL way we get out of it To In on the industries that we think can create jobs that can create good paying jobs and and to protect our workers in that way the long term problem is staying ahead of the curve making sure that the industries that you're supporting Meeting jobs and those jobs are paying well enough so that individuals and households feel that they are moving forward. Give me a comment earlier about how investment in American NORP infrastructure was one of the things that you were worried about. Is this the biggest area of investment that you are concerned about Many economists myself included believe that the so-called golden era of the 1950 DATE 's, 1960 DATE 's, economy of the United States GPE was linked to our willingness to invest heavily in the future and it wasn't just the government it was also corporations willing to do that. So as a percentage of GD We were dramatically above every other nation. We were number one in that category for century DATE . We no longer are part of that is because we are under performing our own Commitment to this area but also other nations have figured it out. In the 21st century DATE , the winning economies, the winning strategies for economic growth, and therefore, enhancing the well being of your people. We'll depend upon whether you're investing. The reality is we just have not And peace with inflation and so if you think about the ability The average American NORP to earn a living How does that kind of play into this longer term concern you have about the next 10 years DATE not being as good as the last 10 CARDINAL especially when Under a higher interest rate regime. Gross Long-term prosperity. I'm not talking about stock market prosperity. I'm talking about the prosperity of the people in the nation is very much tied to the health of the middle class and obviously to weather the wage in the incoming increases for those families are adequate. And Is something that has been a problem now for 40 years DATE in the United States GPE where the median household income hasn't kept up So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the
Old income hasn't kept up. So, this is not a new problem. I think what has happened is that this rising inflation has kind of pulled apart the curtains and now we see much more clearly where these problems are and where the issues are. I for one, I'm happy to see that wages are now Saying LOC . I'm happy to see that workers have more flexibility in how they wanna conduct themselves and so on. I think that's that's a good start. It's not the end. Solution. We need to recognize that a 40 year DATE problem is not gonna be corrected In 4 months DATE it's gonna take longer. The balls get to a place where outbreaks don't become pandemics in the first ORDINAL place. No one covers the world like Bloomberg PERSON . In the coming months DATE do you see that coming We will not just cut and run The moment news breaks 24 hours TIME a day. Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or robot Whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination for the FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? When you look over the next 5 to 10 years DATE over a little bit of a longer time horizon and you think about what's happening in the economy and markets in society more largely Keeps PRODUCT you up at night TIME . One CARDINAL thing that has, you know, I see in particularly important to me is how we handle future pandemic. I, you know, we we shared with COVID that we were not ready. For global pandemic and I think we are still not ready for the next one. The really worrying cases is that we have a repeat of what happened with COVID, We are not prepared at all beforehand by depth spreading too much of the world but with a way higher fatality rate and ends up killing a lot of people the economy grinds to halt on midday TIME the chaos and lockdowns you know is there if it works stream version of what we saw during COVID is part of your worry here that the next pandemic would be worse than what we saw in COVID And worry that underpins that the systems we have are not prepared for it. Clear to see in retrospect that we were not ready for COVID there was no coordination in terms of what responses should be to it instead we saw serve like completely discordated action if you look at where we are today DATE we have not started putting any of those processes in place that we should have had last time if you know we got a And there was a future pandemic that was substantially more fatal. You could imagine the same thing playing out but with a lot more devastation Warrant that many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand there's almost no discourse about a future pandemic and
That many lessons that it seems like we really learned as a society that we are in much the same place we were beforehand. There's almost no discourse about a future pandemic and almost no momentum. We don't seem to learn really the chore lesson Which was that we were not prepared And that we need to be better prepared. What kind of strains do you think this is going to put on an economic system in the future? I think that you played out pretty poorly this time when all of a sudden done and I think at the very least you could see a repeat of that where not only did we have massive supply kid problems that were now seeing in retrospect We had massive monetary supply increased trying mask over Some of the problems What would have been it probably a devastating economic hit otherwise as COVID winds down and are I economic I I monetary countermeasures wind down it becomes clear we never really averted economic impact from It's had massive negative impact. You can look at runaway inflation. You can look at rising interest rates. A slumping economy, slumping markets, and and and that was without, you know, nearly just as they're put it in right here, future one that that does much more damage and we might not be able to get back Or as functionally About in terms of inequality obviously different Were impacted differently both within the US GPE and across the world. So, do you worry about the compounding effect when it comes to, you know, the social strata? Because of the global nature of pandemics. If there is an outbreak in one CARDINAL country that is going to affect every country And and and so not only do you see disproportionate dust in less while off countries but that also makes it really hard for the world to stop this spread of pandemics and that means that if there are Countries that aren't being given first ORDINAL class access. They countermeasures. They will be able to also act as a petry dish. Or I your bugs do just spread it and grow. When all is said and done you know we will have spent Hens of trillions of dollars MONEY as a world. Trying to contend with the fallout. From COVID, that is a really huge expense. And we're still not done with it. It's a little bit sobering to see the scale of impact of that new combined with the game with dislike. Not even solving the problem and that's with the workforce that is able to mostly go back to work in person if you have a more deadly strain there's gonna be a lot more worry about getting back to work and you could see much more protracted productivity declines that sort of Incinerated in the first ORDINAL place. The strain on political systems. You saw kind of the masking issue and the lockdowns becoming a really big contention point politically in many governments across the US GPE and the world. How do you expect that to create a further strain on the system Politically it put a lot of political On on on You know a pandemic from getting out of control in the first ORDINAL place. You know cut it off way closer to the source. That means instead of arguing about masks you know we should have been focusing on how can we get in place You know good ventilation in indoor buildings So that there is massively less spread of pandemics through them that would have been a much much healthier You know focus process as a society is there a bipartisan solution and are there ways that you personally are kind of incorporating this into your own work I know you've been rising more and more both as a philanthropist and as a political donor how are you thinking about this risk in terms of how you work ahead this isn't a one CARDINAL party against another Everything I in the way that some debates over some specific Techniques ORG ended up being I have been spending a fair bit of effort and and and time and in capital on trying to advance you know pandemic prevention I I you know legislation and in policy a lot of the discourse around you know COVID and pandemics in general has you know as you serve you know reference Hey portal.
You know, legislation and and policy, a lot of the discourse around, you know, COVID and pandemics in general has, you know, as you serve, you know, reference, focused on things like masks by the time that's the debate. We've already failed. At the much more important goal. Which is avoiding ending up there in the first Ventilation and buildings the goals to get through place where outreach don't become pandemics in the first ORDINAL place and where we don't have to shut down you know the economy where people don't have to die where we don't have to make trade offs and hopefully we can I think spends, you know, tens of billions of dollars MONEY To save tens of trillions of dollars MONEY later on. There is a possibility I think this leads to revolution in populations that do not have control over their Energy ORG . Access the financial world on demand. Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Tag on the product may read made in the USA GPE but Often PERSON says made in India GPE . Alphabet sun PERSON dart patch eye Microsoft ORG Sacha Nadella IBM's ORG Arvin Krishna PERSON micron technology Sanjay Mehotra PERSON and that's Gap VM ORG ware and that Count Indians NORP running companies all over the world. Why have so many Indians NORP risen to the top? Competitive education system. If you can survive the pressure it takes to get into one of the Indian NORP institutes of technology. It gives you confidence to handle American NORP universities and later at the business world. Meanwhile, the belief in India GPE 's ability to produce so many tech wizards is reinforced every year DATE . Indians NORP make up Reforce of the immigrants receiving coveted HoneB visas for the US GPE . And it's a So Ken PERSON , when you think about the next 5 to 10 years DATE , what worries you most? Of us right now is is I think De Globalization PERSON you're gonna see an Nation states look internally and make sure that they have the ability To support themselves. How much of this is a function of the war in Ukraine GPE and how much of this deglobilization phenomenon started before that? Well, I think it did start before. All you have to do is look at Brexit PERSON . I mean, the idea for Brexit PERSON started. I think it's now 7 or 8 years ago DATE It didn't happen until 2020 DATE but that's the beginning Think what you see in the war finale is let's just take an Up an exampleary Figure in this Germany GPE So Germany GPE strategy up to this point was the outsource their To the United States GPE to outsource their financial management to the EU ORG . They outsource their energy supply to Russia GPE And the answer is they're in market to China GPE . This was the complete globalization of an economy and you can see at this point, I think they're in extreme trouble. So, if you think that deglobalization is the next big risk, what's at stake from countries detaching themselves from each other? What really is the problem Happening. We were able to outsource to the cheapest labor markets. We were able to rely on each other for goods that that really throughout history and I I do think part of this is going back and reading history. Most countries would not outsource items that were Important to their well being food being one of them and I think energy being one that's showing up is to be extremely important What's gonna happen now is i think each society is gonna have to think about did I did i outsource something that That I'm not comfortable with. How was this even possible to fully become deglobalized when so many nations were a lie? Another is it's not that every nation is rich with oil or rich with a nickname.
How was the seven CARDINAL possible to fully become the globalized when so many nations rely on others it's not that every nation is rich with oil or rich with nickel or rich with food resources events for those of us in the United States GPE we have a spectacular Country filled with the resources. We need Germany GPE has gotten itself in a position where it does not have energy supplies. It turned off it's nuclear. It's right at the center and near the war and and the ramifications. We're seeing the elements of deglobalization and it's cost. To ordinary people elaborate on that you should cause to ordinary people what are the costs how else are you seeing a play out throughout history food is always been a key and if you look at what's happening In the Russia GPE Ukraine GPE war I think there's more going on there in terms of supplies, supply chains, Horrified by the war and the invasion but i think the The motivations and the and the rational and what's happening behind it are gonna highlight to people. Can I provide the basics? Each country will move to protect their own citizens. And as a result, they might deglobilize ahead of you. There are populations all over the world that we're not aware of but they wanna eat. And they Be heated in the winter and by the way, they want access to cheap electricity. And all these things are going through the roof until the extent We're feeling the political pain in the US GPE and I I believe we'll solve this problem. It it might take a couple of years DATE but it'll work its way out. Not everybody has that choice. Much of the rest of the world has depended on flows of of those Food cuz I mean we're talking about part of Africa LOC that is totally reliant on the Ukrainian NORP Weedfields and Russia GPE was a gigantic exporter of wheat this is the basic food ingredients that keeps people from Rioting from from having insurrection. We saw it again in Sri Lanka GPE over the weekend DATE . You're nine CARDINAL meals away from having a very unhappy citizenship that's willing to to take extraordinary action to get their family safe. There are, you know, seven 1 billion people in the world. I'd say a one 1 billion of them wanna say roughly or in Western Europe LOC and the And we've set in course a policies Very much focused to a society that has reached middle class. I'm not saying everybody but you know, the vast amount of society is very interested in things that six 1 billion QUANTITY people Two 1 billion in subsaver in Africa LOC During Asia LOC are still trying to reach middle class We raise their energy costs dramatically I don't think they're gonna be you know they're not gonna be happy about that and I I think the Arab Spring DATE fundamentally started over food prices and their basic instinct in need is to feed heat cloth and take care of their family. So what are the forces that are reversing decades DATE of globalization Well, it might be just the safety of these supply chains and possibly the actions by Russia GPE are a highlight to that but again, go back to Brexit PERSON decision By the UK GPE people Vote to take back some of there also they had outsourced their labor forced to central Europe LOC and they had started to make a decision to pull it back for whatever reasons they didn't like outsourcing again outsourcing your financial management To the EU ORG and the ECB ORG . You mentioned the outsourcing of financial assets. On one CARDINAL hand I'm wondering what impact do the sanctions have. Some of our policy moves here are gonna have very long term ramifications. In this environment, we've frozen the bank reserves of Russian NORP bank And if you don't think that every single Maybe not every single but there's substantial number Finance ORG ministers around the world have to rethink Where are there as had secure I've had many people ask me What do I do if my assets in China GPE What do I do with my assets in Hong Kong GPE ? There's a lot of there's a lot of western investment in Hong Kong GPE residual. Happens if we end up in a similar disagreement or conflict are those assets subject to immediate unbanded
Hong Kong GPE residual Happens PERSON if we end up in a similar disagreement or conflict are those assets subject to immediate abandonment. These are questions everybody's gonna ask whether they talk about them a lot or not. They're gonna be asked I'm not saying we'll go to 100% PERCENT investment in your own country but boy the risk Premium GPE has significantly gone up. I mean, is this just a giant politicalization of assets around the world? As you see it, given that now, governments are getting involved in a much more Way in terms of the resources that they own oversee and trade. Companies. We've had to abandon assets immediately because of a political because of a conflict. So now you have to anticipate where in the world might we not like the activities of a future You can come up with a long list of where you might be uncomfortable and you have to truly change your your risk profile there. So, we're in the middle of seeing a very effective use. Weaponization of resources now not everybody can weaponize the resources because they don't have They don't have enough resources. So, to the extent that this is the biggest risk you see on the horizon over the the medium to long term. What about it really keeps you up at night TIME ? There is a possibility I think this leads to revolution in populations that do not have control over there food and energy and in a world that we live in, like it or The the change in the world toward cheap energy Cars ORG oil and gas is used for clothing. It's used for significant amount of products. And again, food is food and I get concerned as to what can happen in these these If if oil and gas does get to be $ 200 MONEY a barrel And if The supply, the actual food supply gets disintermediated. I think you could have ramifications. We haven't, we haven't seen. Now, I'm not I'm I'm pretty bullish on the world so I think people figure these things out but I I think the quicker The world focuses on it and and admits that they have to supply and be independent of global trade in its best way they can the better for their populations. People ask me all the time what is the key to being a really good investor? I tell them it's the surround yourself with and work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world. The people that I would like to have That the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Need to catch up. We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio When you think of cutting edge technology at sea you might be thinking of stuff like this But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. I'm from shipping.
About three% of all the world is huge information Three% Vinot GPE sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option what about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? So, this is a lab. Of flex line where they come in first it's just the body that's what I call it the body of the vehicle and then that's a pieces that have to be assembled put together tested now I'm told you're not building a quote unquote car no I'm not Don't say the word. It's a vehicle. Huh. Yeah. A transportation vehicle. We'll sell you a ride in this vehicle. Can we get in? Of course you can. Alright. There it is. Okay. So comfortable. That's what we want. We don't want you to think about driving. This is why it's not a car. On the Zukes PERSON factory floor CEO Aisha Evans PERSON . Where she says they're not building a car but transforming ride hailing as we know it. She went from Senegal GPE to Silicon Valley LOC chasing a career in technology where she could have a global impact after 12 years DATE as a top ranking executive intel Aisha Evans PERSON took a leap into the startup world joining Zeke ORG 's which probably got bought by Amazon ORG $ One MONEY . 2 billion CARDINAL . Joins us now for a look at the road ahead on Bloomberg Studio PERSON 100 CARDINAL . Aisha. So great to be here with you. Thank you for coming and thank you for having me. You came to zooks as CEO in 2019 DATE over from Intel ORG and just a year later DATE you sold it to Amazon ORG . How did that happen so quickly? It was a journey It takes a lot of capital to take this endeavor all the way it's it's a worthy one When we looked at the ecosystem, when we looked at everything that was going around, we had to decide whether to stay private or whether to get a long term oriented partner. Like some of our fellow travelers Than the pandemic hit that brought a lot of clarity shall we say and so the opportunity presented itself and we we went for it why is Amazon ORG the right fit? First ORDINAL of all, there are great company. They have created both organal and adjacent multibillion dollar There are long term i entered Very purpose driven so That matched our ambitions. There's never owned a car Yeah but we're not a car company. Exactly We're a rave healing company Talk to me a little bit about how you got to silicon ballet. Your story is not the story of a typical TexEO like Jeff Bezos or Andy Jassie PERSON . Tell us about your upbringing. I was born in Senegal West Africa LOC My parents, I thank them to this day DATE . Sort of need school, an implicit expectation, it was an Discussion. Very early on. I showed an attitude and interest. In math, physics, not so much in biology, and in building things, and so they cultivated that and then I bounced back between Paris GPE and and Senegal GPE . Learned a lot about what technology does to people Lives and what it makes possible. I literally had a contrast every few months and so computers were coming online. Not the internet but the what Internet was going to make possible was also coming online the US GPE was to the place to be To study that then basically got jobs in the industry and eventually ended up at Intel ORG in in Portland GPE through that started into facing with silicon valley and then zoos came along. I heard a story about you had take a phone Talk to your friends long distance Really happen.
Started interfacing with silicon Valley LOC and then zooks came along. I heard a story about you hacking a phone in order to talk to your friends long distance. Did that really happen? Oh yeah, it did. I always had a double life a little bit in terms of family, friends in different ecosystems. I still do to this guy. And so back then it was landlines It was expensive. It was. My dad isn't was in telecommunication. So, if he was not confused. So, we had a rotary phone. I'm dating myself and he locked it. But obviously, I figured out how to still make the phone call Who are your role models back then? I mean, it's so hard for young people, especially young girls to see themselves in the tech industry Mary Curry PERSON Was and still is a role model. In France GPE you study philosophy and a lot of the philosophers are also mathematicians So they were role model and they also forced you to think To chief strategy officer at Intel ORG And it was a difficult time for Intel ORG . Intel ORG was kind of losing. Way. What was it like working there at that time? It was a difficult time in the sense that anytime you're successful, you earn the opportunity to talk about what's the next phase of the journey and I was in the middle of that. But it was also fun. I learned a lot. What was it like going from an established brand name Tech ORG company like Intel ORG to a startup like Zukes PERSON I assume there are major differences in culture and execution there. It was quite an awakening. So I didn't tell I was a little bit known as not a rebel but somebody who questioned things and who maybe did the normal. Oh my gosh. You know it was too slow or is this or that or the other. And add your Imaginator. Alright when I arrived at zoo yes it was fast it was we were making decisions quickly but from an infrastruct Standpoint with I was like whoa There's a reason for infrastructure and so but I embrace the journey and said okay we have One. When you're doing what we're doing it's not just about the technology. You have to think about the steps to getting to market. You also have to think about building the company. That it's ready when you scale if you wait until you need to scale to actually build the infrastructure bad things happen. What's it like being leading black female executive In such a white male It depends. I don't wake up in the morning thinking I'm that I wake up in the morning thinking I'm Aisha. I've got stuff to do. Meetings, decisions to make Kids to take care of Obviously in the moment sometimes I think about it because you look around but I I try and turn it A into an opportunity because and that's just how I I have one ones with myself and how you think about it and how you show up is important. So I try and tell myself that means that I'm bringing a perspective that nobody else has. And that's additive And I try and also figure out a way to have what I call an inclusive environment where I see people's point of view and they see mine and I try not to get angry When it manifest itself in annoying ways. What are the obstacles that you've overcome To get here I think that often people assume both an agenda and sort of ethnicity standpoint that it's not normal to be here and therefore maybe you got a discount When it's often the opposite You have to try much harder than than others. I've had to work on Sort PERSON of how I receive information when or how I I deal with behaviors that I'm not acceptable And sort of learn when you take the high roads. I've had to find my voice and not be afraid of it and use it. Are you pleased with the change you've seen or has it not changed fast enough? I can't be pleased. I mean, I I'm pleased that there is change but absolutely not. We have to do a lot more as an industry. Why isn't it changing faster? Why don't we see Want people like you in positions of power. Well, I think that's a complicated answer. I think it starts very
Or as an industry. Why isn't it changing faster? Why don't we see Want people like you in positions of power Well, I think that's a complicated answer. I think it starts very early on. I have a son who participates in Lego Robotics LOC and we had some observations and kids are what seven, eight, and you already see differences I think also from a social standpoint, around middle school, when there's a transition, for girls, maybe having a support system to stay in math, dentist defying it, teaching it differently, and then as people come up the ranks, making sure, especially for women, making sure that we have a System around them so they can traverse through some of the some of the phases like for example marriage and childbirth and so on You're building a ride hailing service not a car why is it important to have a woman in the room People of different races in the room. I'll give you a story. We were discussing pick up and drop off And I'm the only woman in the room. Yes, I'm always in jeans, and what have you but occasionally, I dress up and have high heels on. We're wearing high heels today DATE . Yep, I made a comment. Right? And so, I was like, okay, we have to think about it from that standpoint, because if we're giving right to customers in San Francisco GPE for example, on a Friday DATE evening TIME , on a Saturday DATE evening TIME , maybe some folks have heals on, and maybe we need to think about the pick up rages. Because expecting them to go uphills in you know high heels probably not a good idea. Our Tesla and Elon Musk PERSON competition This is silicon valley. We you know pay tribute to disruptors. Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs cure. As universally important to human life as sleep Surrounding it's necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happened there can be harnessed to further expand our It's easy to memorize that makes you smart. It can spit back a lot of back. But if you wanna be wise, if you really want wisdom, you gotta know when and how and why to use that information. And that's what you bring figures out while you're sleeping. Do you see that coming 24 hours TIME a day. Bloomberg PERSON . Let's talk about the competition what is Zuke PERSON 's edge over GM ORG 's cruise googles I look at them a little bit like fellow travelers. Competitors because we're in the same space and we're going after some of the same things but this is a big industry It's not gonna be a winner take off second ORDINAL it's The critical Lay that groundwork. Now, having said that, I would say one of the big differences is that we are going straight to what we think is the ideal product To provide rides to customers. We are not here to enhance your driving experience. We don't even want you to think about driving. So the customer experience is built in such a way that you're here to be transported. You have an app which you already know how to do today DATE . You have an app where you say I wanna go from point A to point B especially in dance An environment think downtown Cisco GPE . And we'll pick you up. Sliding doors. You step in a little bit longer.
Urban environments think downtown San Francisco GPE And we sure and we'll pick you up. Sliding doors. You step in. A little bit London GPE carb We don't To taking a car that was architected For human driver and then adding sensors and computer to it in order to make it fully autonomous What about Tesla which is right down the street Our Tesla and Elon Musk PERSON competition Fellow travelers this is silicon valley we are you know paid tribute to disruptors having said that we're not exactly in the same business we don't sell a car to people we sell a ride to people our customers are not drivers they're riders and therefore we use the same types of technologies but they are in the car selling business How does Fit PRODUCT into the future of Amazon ORG . Well, that story is yet to be written. First ORDINAL of all, we we hope to deliver on the promise of a new segment Sort PERSON of a big business and the one of those in the tradition of of Amazon ORG . We know there's a world of possibilities but I tell everybody we first have to earn it, right? Before we talk about sort of synergies and possibilities and opportunities together. Oh times anything is still oh and it will be for a long time. We're focusing on building our business, getting to market, and then there's a 10 1000 CARDINAL of possibilities We could do together. Is Zuke PERSON 's gonna be dropping off my boxes Is that what I should expect? If that's the right thing to do and if it makes sense to do so but first we're gonna make sure to take you everywhere you need to go without having to worry about parking, having a car, and so on. What's it like having amazon as your boss It's been good. We're an independent subsidiary. Of of Amazon ORG . So yes they are involved. We agree on what's gonna happen, why it's gonna happen. How often did you talk to Jeff Bezos PERSON or do you talk to Andy PERSON Or maybe it's Dave Limp PERSON Don't talk to them that often. I mean, we have monthly DATE business review or quarterly DATE business review. But no, it's not like I'm besties with them and we're on the phone and wrapping and chatting now. Well, you must know what their expect What is amazon expecting of zooks? Execute, get to market, scale. And do you have the funding to do that? GM ORG , Very well funded competitors or fellow travelers as you say. Are you getting what you need? Yes, more than what I need. Funding is not something I even worry about. So what's it like to operate in that environment? Where money is not an issue? Well, I mean, you have to be careful, right? Because you also don't want to be a drunken sailor and be like, oh, now I have, you still have to be a very disciplined. You have to manage the phases of the business. Well, like, okay, how do we exec How do we make our mouthstones? How do we get to market? Where things organize properly? How do we hire? How do we retain? And so on and so forth. How do we stay mission driven? The public seems to have lost interest in waiting around for self-driving cars. I rode in google Driving car in 2011 DATE . Wow. And I'm still waiting Will to buy or just ride a self-driving car on demand. Why is it taking so long? I think in self-driving. First ORDINAL of all, the opportunity is so clear. The beach is so broad. We forgot that big things do start small. One CARDINAL second ORDINAL it's a hard problem to solve we talk a lot about safety And we talked a lot about human era when it comes to driving. But we also forget that collectively at least in the United States of America GPE . Humans collectively drive 100 1 million QUANTITY mi. Before Having a fatality. Lot of miles. So humans are also pretty good. And the thing humans are good at. Which is hand iconic exception handling. We all know how to drive. If you were all fully autonomous, would be deployed already but we're driving amongst human and you have to deal with so many little scenarios. There are so many things that you've been learning about driving since birth. And codifying that using AI sensors and and computers is turning out to be a lot harder. Last but Please it's a safety critical system none of us. Should deploy Until an unless we have clothes loop evidence that were safe. So what is the AI ORG ?
Please it's a safety critical system none of us. Should deploy Until an unless we have clothes loop evidence that were safe So what is the A I need to learn how to do Point. What are the challenges left to solve? It needs to know how to deal with unexpected things. I say as they happen. And is that possible? Can I AI learn that? Of course it's possible. I mean I'm one of I'm an optimist when it comes to technology. I started in wireless. So you have to think from Switchboards all the way to today DATE . Quite a journey. I'm fascinated by flying. Airplanes. The right brothers if Trying to solve what he's being solved in aviation today DATE . They wouldn't have tried. We we just had let it marinate. Let it take its time. The algorithms will get better. Compute gets better all the time. Sensors get better all the time. It will happen. What about security challenges? We've reported on how Tesla Have been hacked. So you have to design security in your into your products from the beginning. And for us we look at all the scenarios Of what could happen from the security standpoint. Now, these these robots or these robot taxes are also recording all the time. So, they sort of know what's happening inside of them and around them so that gives us a little bit of an edge and then you look at access This is something you just have to pay attention to understand what's going on in that world and make sure that you design against it. What does Aisha Evans PERSON see as the future of Zuke ORG 's do you see a global Or do you see something more modest However you get your Welcome to Deborah Hey Facebook Hey Spencer We're going to step by step electrify everything and what does that mean? Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions. What do you want to know today DATE ? Ask a question or visit search go to find answers now. How many rides have you taken? Actually, it's such fair, right? I take a lot of riots. Both in our L three testing fleet. As well as in the ground up robot taxi. So, when you take a ride, what's your report like generally afterwards? Well, okay. So, Two CARDINAL different things on the test fit because and this is a big difference between us and our fellow travelers. I mean our L three fleet the Toyota ORG Highlanders that are outfitted with the same centre architecture placement and compute. There are purely engineering past vehicles. So when I it's called drive review. When I take a ride it With understanding what progress we're making what issues were still having I'm fascinated by the scenarios we can't handle how fast was tele ops able to step in and so on and so forth so then I have a long report And the app and this and that. When it's I'm in the robot taxi. It's more like I'm excited. I'm usually giggling. And then after after 5 minutes TIME I'm bored. And I'm on my device. Which is what you How is your navigating supply chain challenges The chip crisis impacted you? Yes, it has. It's impacted everybody. Look, first ORDINAL of all, some things are just more expensive than they should be Second ORDINAL but you accept that it's the same for everybody. You have to get a lot more
Acted everybody. Look, first ORDINAL of all, some things aren't just more expensive, then they should be Second ORDINAL but you accept that. It's the same for everybody. You have to get a lot more crisp around your needs because lead times are longer. And that's really when it pays off to have had a good relationship with your suppliers and treated them as partners so you can talk about your problem statement and arrive to solutions but it hasn't like slowed us down. It's just been an extra Vector to manage. Uber and Lyft seem like they would be obvious partner Have you talked to them We in this industry there are no secrets and we're all friends. We all talk to each other. At some level or another. So yes, we all have doctor each other. Can you imagine would be your first ORDINAL customers Well, first ORDINAL of all, Las Vegas GPE , we've been public that that's our our first ORDINAL lounge. I call it sort of affectionately. A one CARDINAL street dance urban environment. How's that? With a lot of demand. And then we really think that in starting at least at the beginning big cities that have a very dance Or urban sort of landscape where people are going to work, people are going to museums, people are going to restaurants, they don't wanna worry about parking, we think that would be the first ORDINAL customer. So, commercialization is on the horizon in Las Vegas GPE and also San Francisco GPE . That would be next. How do you stay motivated on that To commercialization. Given that there are still, as you say, these hard problems to solve Cuz every day literally Either Something happens in terms of progress And it's really important to not just look at the ultimate success but I call it like kind of a long the way the little celebration I mean even when I do drive with you yes I have a long list or you know oh what about this what about that But the vehicle will do something new or something awesome and you're like, oh my gosh, you go awesome. So, they are so many things that happen on a daily DATE basis, weekly DATE basis that you see advancement. I I talk it's Climbing, right? You get to assert an element or a certain place. You appreciate the journey. You turn around. You look down. You see what you've done and you're like, alright. Let's go for the next week DATE . So, as you put points on the board, what does Aisha Evans PERSON As the future of Zuke ORG 's do you see a global Or do you see something more modest I see I want I hope to lay the foundation for a global mobility giant. We talked about human being need transportation It opens up access to Mobility PERSON , it opens up access to knowledge. It opens up access to inclusion, Not to mention safety the environment and frankly humans were just too valuable to spend also 400 1 billion hours QUANTITY worldwide driving and we think that this is at the center of that puzz So that is the goal Alright PRODUCT . So, we're gonna do, this is a little rapid fire section now. So, just quick answers. What is Zuke PERSON stand for? The word Zukes PERSON is a basically a marine sort of species that is solar powered and self moving in the ocean. Interesting GPE . Piece of advice for your 20s. Take a chill pill it'll be okay What about your 40s Enjoy the journey you've made it Are you under restaurant at some point? Is that true? I confuse the love of cooking and running a restaurant What's your favorite thing to cook? Which is a good dish. Biggest guilty pleasure Trashy books. What box? What's your favorite travel destination? Me too, which island. Hawaii GPE . I'm from Hawaii GPE Kawhi all the way last TV show you've been I'm in the middle of a Bridgeton GPE . Your view on work life integ I don't use the word balance. Work life choices, setting expectations on all sides. They are everything. They are the beginning and the end Our driverless future is always right around the corner or 10 years DATE away. Give us
Are everything. They are the beginning and the end. Our driver is future is always right around Corner LOC or 10 years DATE away give us a realistic Online PRODUCT . When can we ride in the zoo? A lot of people ask me when can I tell my kids they can't have a they shouldn't get a driver's license. And I think it's gonna be probably my kids' kids. Arguments four CARDINAL and against going public Against definitely focus Quality ORG pressure is something I understand and know and this is a long term journey. So, focus is important. It seems to be everybody's dream in this valley. Is it yours No no my my dream is to to get this this robot taxi out there and to see it deliver the promise that I know it well Gonna be on public roads this year DATE . Know we'll have to see What about 10 years DATE ? What is success look like for zooks in 10 years DATE ? Several cities Then I say hey I'm gonna zooks my way over there To Evans. Thank you so much for joining us. Great to have you. My pleasure. I appreciate you coming over. Hear from leading economists. Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars BSO now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed archival concerts visit PSO ORG . Org slash now with a music plays on BSO season sponsor Bank of America Propulsion ORG systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver their machines yeah we offer a collision avoidance it's a subscription service we'll send you an alert up to 7 days DATE in advance if your satellite's gonna come Dangerously close to a piece of debris or another satellite. Companies have been doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. So much more hardware in the space. You have a big collision it creates a clouded debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites in space the risks of the collision the likelihood of the collisions going up
This is my kitchen table and also my filing system. Over much of the past three decades DATE I've been in investor the highest falling of mankind I've often thought was private equity Hey Hey Facebook make it to the top. Negotiate with him I did no due diligence For the past several decades DATE , Andrew Livers PERSON has been one of the most important figures in American NORP business. For 14 years DATE , he served as a CEO of Dall transforming that company from a chemical manufacturing company to one CARDINAL led by science and innovation. Currently, Andrew Livers PERSON is involved in a number of business endeavors including He also serves as an adviser that Saudi NORP sovereign wealth fund I sat down with Andrew recently and loosen showroom in New York GPE to discuss his accomplishments and his future ambitions. So I've interviewed many business people on the show but very rarely about interviewing anybody who has any interest in so many different continents. So, you're doing something in Saudi Arabia GPE , we'll talk about that. You're involved in things in Europe LOC . In Australia GPE , your native Australia GPE , you are now the head of the Olympic committee. Is that right for the next Olympics EVENT in Australia GPE ? It's a 2032 Brisbane Olympics. They won the bid last year DATE and on the president of that to put it in place and 2032 as you know is 10 years DATE so that's an exciting project. And the United States GPE you were for Sometime more than a decade the CEO of Dall chemical initially that were called down and you merged it with Dupont ORG before you step down is that right correct so let's go back to your beginning you grow up in Australia GPE How did you manage to get to Dao and to the United States GPE ? Yeah the the gene that got me to have wanderlust was because I grew up in a little multicultural town in Northern Australia LOC called Darwin PERSON lots of Asians NORP lots of indigenous people first Nations people lots of immigrants like Greeks PERSON that came from these Very poor areas so I I had this desire to go see where they were from and The places north of us Indonesia GPE , China GPE , Asian NORP , as a whole. The American NORP You know, if you like knowledge that I got was listening over the radio to, you know, things like the JFK, Assassination, and man on the moon, in, you know, I we didn't have TV where I grew up. So, I was just fascinated by America GPE and what it offered the world. So, that combination got me recruited out of I didn't join a British NORP company. I didn't join an Australian NORP company. The companies that came by that were American NORP were the ones that I was intrigued by and the best recruiting line of them all for a 21 year old DATE . Join us and we'll show you the world. So that com Where I grew up what I was exposed to and the Dow recruiting line. Family a wealthy family Blue colors we would call them immigrants my father we lost our grandparents he he lost his parents and so he raised his two CARDINAL younger brothers when he was 12 DATE he became an apprentice and a carpenter and he and his two CARDINAL brothers Order PRODUCT small fledging building business in Darwin PERSON and we I was supposed to go to university in my family. Do you graduate university and go to work a dowel and in Hong Kong GPE initially? It would be they send me down to a very cold part of Australia GPE called Melbourne GPE which haven't have a lot of great people. I got cold redefined when I went to Michigan GPE But I thought it was cold at the time. They went I went there for 6 months DATE and there was an accident in a factory in Hong Kong GPE . And they sent four CARDINAL straight in engineers. I was one of them to go work to actually help the locals adjust to operating a complex chemical environment. There's a now is a very famous chemical company was for quite some time. How do you go from Hong Kong GPE Australian NORP accent to an American NORP company in the middle of the United States GPE . The visionaries that ran down the 60s DATE that led to my recruitment in the 78
With this Australian NORP accent to an American NORP company in the middle of the United States GPE . The visionaries that ran down the 60s DATE that led to my recruitment in the 70s DATE . Had this view that to go into national yet to high local. Well before it was Vogue and they went around the world looking for people who were willing to go Hong Kong GPE at that time wasn't the sophisticated city that it is today Basically, you know, what they did was they localized and grew talent locally but kept a playbook. So, I was spotted early by the then dial leaders and they started to move me around to test me in different places. And then eventually to the US GPE . Engineer, what was your skill set? Chemical engineering which you know, when I look at today DATE 's world and I think about chemical engineering, the word chemical sort of sort of puts you into a different place with a thought. It's really problem solving engineering. Learn how to be a problem solver by learning chemical engineering. So, you've actually moved to Dow ORG headquarters where is it's in Michigan GPE , right? But what what's small city is it? Little town called Midland GPE with a founder, founder of the company, and we're still headquartered there. Alright, so you move there and and for how many years were you to see y'all? So, just share 15 CARDINAL . Of The last couple were in the merged entity which my successor then we've set up the demojo and we can talk about that if you like but certainly the 15 years DATE included the last two DATE as executive chairman of the Dow Dupont entity but I let us into the merger Restaurant ORG are behind that. Was a 10 year DATE remake. We put a strategy in place in oh five DATE . And we execute it over 10 years DATE to move us back to an innovation centric company. We had lost our way. We had commoditized. We had restaurant on the walls of all our previous inventions. And by the time the 90s and the ohs came around we were really out our innovation Chest was bare. Our cupboard was bare. So we reconstitute on innovation in the company by changing the portfolio. So you took down chemical. You renamed it down at one CARDINAL point. Took the chemical out of it. And then you merged it with dupont. Yeah. And then you split the company into three CARDINAL different companies. Is that right? Yeah so two CARDINAL amazing American NORP iconic companies 300 so so years DATE of corporate issue between them Dupont ORG found it on explosives they all found it on you know chlorine you think about the corporate history in both of those the portfolios they both at assembled by the time we hit this cent Were across a range of different applications and there were many things to many markets. So what the premise of the case was working with their brain on the dupon site was we put the two CARDINAL together and separate them into more pure please. So Dao materials the ag ORG company Agricultural ORG products and of course the Dupont ORG company the new DuPont ORG company on specialty chemicals and plastics hey you step down and CEO number of years ago DATE did your wife say when you're done being the CEO is the time you spend more time with me and stay at home and now you're running around the world so was she disappointed or she happy to have you out of the house still did she expect me Retire no I should knew me but the story on the Olympics EVENT is a classic that call came I don't know 2 months ago DATE on a Saturday DATE we're in Sydney GPE now living room I got a call from the premier of the state of Queensland GPE saying we'd like to offer you the presidency of the Olympics EVENT I said excuse me And and you know I I was aware Brisbane had won so I didn't embarrass myself but I said can I get back to you can you tell me a little more give and I'll get back to you yeah but we wanna announce it on Monday DATE so I Stop. Okay. So, anyway, my wife said, who's that? And I told her and she. And she said, look to me in the face. She said, you've got to take it. And I said you know how busy I am right and she said I know how busy you are but you gotta take it cuz you're the right person to get it done And if it means you're gonna drop some things, drop some things but take it. That's the type of partner I have. Back in 1997 DATE I was interested in the.
Back in 1997 DATE I was interested in the following question which is There are a bunch of the dinosaurs called Sorapod Dinosaurs PERSON which had really long skinny necks so a potassirus is an example I also really long skinny tails. So I made a computer model that showed that in fact the tale of these Sorapod NORP dinosaurs could actually act like a whip. A bull There's a way of bullet makes that cracking noise. Yeah. Is because the chip of the whip actually goes about twice the speed of sound And that crack is a sonic boom. Yup I think the way they got a date was to impress the females by making loud booms. How did you wind up to be the chairman of all of a bill company when you hadn't really been in that industry? I think the manufacturing thermatic that I had throughout my whole career wrote a book on it making an America Made me an attractive candidate to a whole host of different companies around the world whether be bored or advisory certainly the lucid experience was something I didn't predict but it came really through my association with the kingdom of Saudi Arabia GPE who were the major investor now Tiva ORG the prettiest little I got asked by the PAF ORG to come in and help rebuild the company and create what you see here which is full-fledged EB company first ORDINAL Greenfield PERSON site EB's test that did a modified site right so we build a Greenfield PERSON site and it's up and running right now so matter factory was a big piece of Batis GPE that was attractive to joining the Lucy PERSON experience. So, shout out to Ramcoast LOC now the most valuable company in the world. Is that right? Yes. And you're involved. You're on the board of it. Yes. And you see energy prices or oil prices coming down in anytime in the near future? Do you think they're gonna be over $100 MONEY approval for quite some time? Look a commodity markets as you must know well know in your story Korea David impossible to give you an answer other than you know the most important dynamic of the mall is climate change and see a tour emissions and how can we make oil and gas for that amount of cold before but I think coal is destined to be phased out But rolling gas and our addiction to it and the transition that is needed to get see a two CARDINAL out of the air will eventually dampen demand EVs which I'm sure we'll talk about soon Evies ORG alone electrification of The transportation market. We'll see a damping of demand but it's impossible to predict in a short term. How do you predict a war rushing Ukraine GPE and the effect that it had on commodity prices? So, we do, we will go through periods. A zigzag line if you like a pricing. For some years DATE to come. And I can't tell you whether it's gonna be high or low, no one can But Sally Ribbit PERSON which has a normous amount of oil. Seems to be interested in finding ways to do things that are not related to oil and electric vehicles. It's one of them I guess, right? Yeah, diversification. Division 2030 DATE that was Place and you'll you'll quite familiar with. By his highest crown prince has has a big piece of it to diversify away from oil and to go into other businesses and other activities that might be related so chemicals and plastics and downstream creating a circular carbon economy, hydrogen, and going to the green economy. Solar, renew General wind. Nuclear power. This deviceification on the energy mix is a big part of the vision 2030 plan. And that's what Aramco and others in the kingdom are driving. Let's talk about Lucid from Mumma. You're the chairman of Lucid. Yes. And it's an electric vehicle company. Tesla seems to be so far ahead of everybody else. How do you compete with So when they have such a large share of that mark.
Imma PERSON hear the chairman of Lucid. Yes. And it's an electric vehicle company. Tesla seems to be so far ahead of everybody else. How do you compete with Tesla when they have such a large share of that market? This is a technology business. So, in your earlier question about how did I get involved? I said manufacturing. Well, manufacturing is an interesting word being useful a couple 100 years DATE in humanity as we obviously went up the technology ladder. Humans are inventive and innovative because of technology advantages. Lucid offers a technology And beats everyone right now and has been recognized for it. Firstly ORDINAL , is the distance we can travel without needing, you know, to charge and that's over 500 CARDINAL mi EPA ORG certified. Second ORDINAL is our charging time. We can actually get a recharge of up to 300 CARDINAL mi in 22 minutes TIME . That's technology. Those two CARDINAL topics are all about The car and it's Is aesthetically beautiful It's absolutely totally a luxury car and clearly the experience and the software that supports it is also technology. So what we've been doing at Lucid is homeming in on the technology side of differentiation. Is there room for a Tesla or a Lucid and a bunch of others? Of I mean we are going to see EV ORG 's as the primary motor transportation in our lifetime. Now, where is lucid manufacturer's cars? Casagrando GPE , Arizona GPE . Just outside of Phoenix GPE . If I wanted to go buy one, where do I go buy one? Buy them online or you come to showroom like this and they cost about $5000 MONEY a piece or something like that. You are in the right place to buy one. We can maybe hopefully sell what you want as you leave. The we have a retail strategy. We go directly retail and service centers around the We're opening up retail centers as we speak in in Europe LOC but we have them in the United States GPE and this is an example of one CARDINAL and the price point is not $ 5000 MONEY . We have a price point at the high-end lux Our competition is Porsche ORG BMW ORG out here trying to be an electric vehicle for high-end cars. At this point in time, that's our strategy. We've got the dream, the Grand Touring, we've got the the air, and then the SUV, the gravity, these price points are North of $100 thousand MONEY with the the dream at 161 CARDINAL 70 1000. But clearly that's a luxury and the mass market end where gentle motors and forward and others are in a pointing themselves is obviously the big opportunity. We'll eventually get there but we've made no announcements. And you have one of these cars? Do. I was an early buyer at full price. I felt it was important that I demonstrate my support for the team. I'll never forget the the amazing drive I had in it's I have it down in Florida GPE where my residences I drove it drove to Palm Beach GPE and drove around there and every time I stopped I had people looking at me And I knew it wasn't me. He was clearly the car. And then I parked it and I will kid you not. It was like a mob scene around me. It was one of the I think it was the second ORDINAL car in Florida GPE . So clearly I've not been seen. I valet parked it at this hotel where I was having dinner. And and the the gentleman wanted to compete with the other gentle Ballet Park GPE . Can I drive a car and drive it? And I said, you know Maybe I should park it myself and so it's it's it's an attractive car and it really drives supremely well. Let's talk about the roads on which these cars drive. So, you've been advised with the President of the United States GPE on infrastructure and manufacturing but on infrastructure, you've been involved with the legislation that was passed not long ago. United States GPE infrastructure so terrible compared to so many other a wealthy countries You know I have been around US GPE politics like you for a couple of decades DATE and have served a variety of presidents from the different parties and and the attitude in the United States GPE is obviously to keep taxes low and keep the public spend under control and the word control is interesting but that Forward thinking in terms of planning and therefore a short term is around our fiscal policies has hurt us I mean in essence you infrastructure is a long term And and to get a long term return putting into private hands is one way of doing it but really the public side of life has to be willing to be
Doing it but really the public side of life has to be willing to brew the forward spend the forward spend on airports and roads and and EV ORG charging stations has to come from the public domain now raising taxes To spend money on infrastructure Means you've gotta trust the people doing the spending. And I think the public private model is the way to go there. Which is actually create an infrastructure bank. That these US GPE public company owned or public sector owned that has private sector matching funds. I think that sort of breakthrough has yet to occur in the United States GPE . So where we go is tax and spend which unfortunately Disagree with. Manufacturing is something United States GPE has thought by many people not to be as good at as we were 40, 50 years ago DATE . Is that fair? There's a perception That manufacturing is yesterday DATE 's sector and that is so erroneous because pretty much everything Autumn life is made Big, expensive cities have a lot going for them but if you live in one, you probably notice that these big, expensive cities keep getting more well expensive. So there's really nothing keeping you there But then again moving is a hassle Well, what if someone paid you 10 grand to do it? What if they threw in free office space? A bicycle or a gym membership Programs WORK_OF_ART and cities and states around the US GPE are doing exactly that and they're getting Lot of interest. About 90 1000 CARDINAL applications. We had over 1800 CARDINAL applicants from all over North America LOC . Beneficial to their communities and the workers joining them or are they little more than flashy advertising campaigns for places looking for an injection of fresh talent Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. People talking about that all day DATE yesterday DATE Now your first ORDINAL book was about manufacturing and manufacturing is something United States GPE has thought by many people not to be as good at as we were 40, 50 years ago DATE . Is that fair or not that that's a perception at least. Yes, that's And I addressed it in the book because we think smoke stacks and we think of rivers on fire when we use the word branding is everything and today everything it's branded in a heartbeat right through Instagram NORP and you name it and as a result of that there's a perception that manufacturing is We've only got three CARDINAL functions. Okay? To invent, to make, and to sell. The rest is overhead. And the make part Actually very connected to the event park China GPE was brilliant in its strategy through the 30 years DATE of doing sale paying because it attracted assembly And then insisted on R and D there were only 10 R and D labs foreign owned in China GPE in 1990 DATE by 2010 DATE there were 40 1000 CARDINAL for an R and D labs Because they wanted to know not just how to make an assemble they wanted to invent all the way back to the material to the actual the battery to the products Do that they needed our arms.
Oh not just how to make an assemble. They wanted to invent all the way back to the material to the actual the battery to the products and to do that they need an R and D. Manufacturing R and D live together. Okay they're live together through prototyping and scaling and the topics of invention and innovation are in manufacturing cuz you actually learn while you make and then when you digitize you learn more digitize the manuf Is a massive innovation opportunity And frankly one of those things that the United States GPE is phenomenal at Is we know how to innovate and be an entrepreneurs and how to scale but if we've lost our billy to actually make then we start to atrophy the innovation side Conventional wisdom is that United States GPE can't manufacture things at cost that are attractive to markets so that's why we've outsourced it. You think that's unfair? It was fair during what I call the loss of industries such as textiles and footwear and cloth Which were very labor intensive. It's completely not the case with things that make the iPhone ORG , okay? And all the circuitry and semi-conductors and high end technology, Pots EB's ORG this is where the United States GPE is actually the best at and it's not labor cost driven so offshoring and outsourcing and and moving things for labor costs fine they went to countries that have lower labor costs Bangladesh GPE is on the Vietnam GPE 's but the high-end manufacturing, the quality manufacturing, for 2 days DATE and tomorrow DATE 's technology innovations. We should be the epicenter of that right here in this country. Because the Past is actually not the relevant cost. The relevant cost is actually the raw material, the supply chain, and we have the market This is one of the few countries in the world that can say i'm one country I have a massive market and by the way I'm in Darwin PERSON lot of people and natural resources that's manufacturing Now you are an immigrant to the United States GPE and your grandparents were immigrants to Australia Immigrants ORG has often said have like capacity to work very hard to prove themselves to move up the ladder so do you feel you have an immigrant mindset that is pushed you to do all these things I think my story as growing up in an immigrant family where English LANGUAGE wasn't the first ORDINAL language at home. It was Greek NORP and speak Greek NORP man do. I do yeah and use for a lot. I guess when you're talking the Olympic committees. With all of that but yes it's probably useful for that. I think the immigrants backstory I have really drove me to work hard. But also To make a difference and a very American NORP trade what attracted me to America GPE this very day and don't embarrass you you're a great example of it is the amazing giving back that occurs in this country and not enough of us know a lot about it it gets a bit a few headlines So I mentioned the text and spent thing as being a detriment to building modern infrastructure but the on the other side Are charitable and give Care ORG about making a difference in their community that's what Dow showed me and that's what I and my wife poor and I live today that American NORP Hey For an immigrant? Means that for the next immigrants, I can make we can make their life better. So for somebody who's watching this and wants to be a successful global business leader, what are the skill sets is it hard work, learning how to read well, keep continuously reading, learning how to be good speaker, what are the skill sets you think somebody really needs? One CARDINAL of the things that I would add to that list I agree with all of that that I would do and I still do to this very day is I would prepare Well before I got the job or was given the nod I would know as much about what I was about to be offered or to do Before I actually did it I would read I would talk well before the days DATE of the iPhone ORG I would go to the library I remember my father knocking on the door was the botanical salesman remember those books there were 12 CARDINAL of them right and I would begged him to to buy them and he said only if you read them all And I read them all. And I was so I was 12 DATE and so so I think preparing So that when you get the.
Read them all. And I read them all. And I was so I was 12 DATE and so so I think preparing So that when you get the right to talk Do you have the podium? When you have the right to say something You actually have the knowledge to speak to it I think people have gotten Bored with facts So, you've gotta blend it with interest. Personalized the facts Examples and then demonstrated yourself. I think that cycle of teaching needs to be introduced certainly in our education system but in real life, what are your parents say to their neighbors we have it on usual 12 year old DATE is sitting here reading the unsightly Peter Botanica PERSON . It Where you were told to read. You know, on these days DATE , of course, parenting is forcing kids to get off the TV and reading. But no, I, it was nothing I really noticed. It wasn't seen as odd. I'm going to name a couple of of your babies. I don't know if I'm asking you to choose amongst your children but you know, some of the most recognizable buildings by you, of course, the millennium DATE bridge, London City Hall GPE , the right stag, and the great chord British NORP museum, what was your favorite The right stag does stand up because first ORDINAL of all it's an energy manifesto so so it transforms That was dependent on fossil fuels uses all the technology to produce something which just essentially carbon neutral and there's a public building Symbol ORG of a nation Rates ORG . Sustainability if you can You can get a new life to a building. It also Parliament ORG in the world so it puts The public Above. The politicians who are answerable to them. And that of course was made possible by the politicians. So it's it's a demonstration of democracy in action. Watch Bloomberg PERSON surveillance early edition for the news you need when you need it. In new york GPE and Anna Edwards PERSON in London GPE . Twice as much as Can it sustain it's normal at a time when everybody else is facing a very different reality Be prepared be ahead of the game. Hey Facebook Blueberries. Hey Facebook Access the financial world on demand. Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Thank you, Andy PERSON so much for coming down. It's really wonderful to have you here in person. It's my pleasure to be here. Thanks guys. We actually lived in the same dorm in college. Just a few years DATE apart. So, it's been almost a year since you took over From Jeff PERSON CEO of Amazon ORG and it's been a year of first DATE the first ORDINAL stock split since the. Com boom the first ORDINAL vote to unionize in Amazon ORG warehouse your first ORDINAL Bloomberg Conference. Thank you. I wanna start with a quick report car.
The first ORDINAL vote to unionize in Amazon ORG warehouse your first ORDINAL Bloomberg Conference. Thank you. Start with a quick report card. In February 2021 DATE Jeff Bezos PERSON shocked the world by announcing plans to step down as amazon CEO Months later DATE he passed the reins to Andy Jassie PERSON his long time top lieutenant the architect of one CARDINAL of the company's biggest profit engines Amazon ORG web services Basils PERSON has stayed on as executive chair leaving Jassie to navigate a critical inflection point in Amazon ORG 's history. Does the company manage market turmoil rising inflation and regulatory and a push by some warehouse workers to unionize all while keeping customers coming back join me on this edition of Bloomberg Studio 100 ORG . Amazon ORG second ORDINAL CEO Andy Jassie PERSON he joined us from our flagship Bloomberg GPE technology summit in San Francisco GPE I'd like you to grade Review ORG of Amazon ORG 's performance But quickly how would you grade Amazon ORG 's performance over the last year DATE with customer Well, I think we, you know, I'm not sure the right person agreed myself during the year or not but I I'll give you my take. You know, I think with respect to customers, I think we've Lot of good you know and I and I think if you look at during the pandemic which really has extended till the early part of this year DATE It all so much of the PPE ORG and food and essential items and people equipping their home offices From Amazon ORG and and you know to scale the way we needed to remember in 2020 DATE we grew 39% PERCENT your over year DATE on a 245 1 billion dollars MONEY revenue run rate I mean it's very it's unpreceden Never happened before but it was really hard to do that and we had to take the really big footprint of fulfillment center footprint. We built the first 25 years DATE of Amazon ORG and doubled it in 24 months DATE . We built out that transportation network in just a couple years DATE . You know, we nearly double the size of our workforce during that time and I think you saw it Businesses, you know, AWS ORG is a really big part of helping And governments have business continuity during the pandemic and so many companies and organizations in the last year DATE made this strategic decision that they were gonna stop running their own infrastructure technology and disproportionately chose AWS ORG to help them move to the cloud and we spent a lot of time helping them make that Information. So, what about investors? I mean, the stock is down significantly from a peak last year DATE . You know for investors or financially I'd say it's mixed you know I think we have some businesses are growing really strongly if you look at AWS You know in in 2021 DATE grew 37 CARDINAL year% over year it'll it's not a 74 1 billion dollars MONEY revenue run rate business it's pretty unusual growth and we grew 58% PERCENT over year and our advertising business you know it's 32 1 billion dollars MONEY revenue run rate business. So, some businesses growing really strongly and you know, we've continued to grow in our retail business despite pretty crazy, comparables during 2020 DATE but I think the real challenge for us there is on the car side and there have been several Of how been some of which are more controllable than others. You know, I think the part that's less control was really round inflation and I think we thought that inflation would start to attenuate in 2022 DATE and with the war in Ukraine GPE , it just went the other way. It has significantly accelerated. So, the cost of trucking and line horn, ocean and air, and fuels to Substantially going up I think that will turn you into some point. No one knows how long that'll take I think the more controllable areas for us are really around fulfillment center capacity and productivity. It was taken about 24 months DATE to build new filming centers during the pandemic And so we're to make decisions you know in mid 2020 and early 2021 DATE on how much demand we're gonna plan for and so you know we we end up with more capacity than we need right now and and there's a number of things that we're working on We've stopped building our properties where we don't need it yet and we've let a number of leases lapse and not a small number, you know, both those things. We've had a lot of occasions Street where we work on productivity, made improvements, and we have a lot of clearly to find initiatives and I'm confident we're gonna get back to the right.
Both those things. We've had a lot of occasions Where we work on productivity, made improvements, and we have a lot of clearly to find issues and I'm confident we're get back to the right level profitability. You are gonna sublieze 30 1 million square feet QUANTITY of space. Is there a mistake in the Because of the overdose Have to make these decisions 2 years DATE in advance and again if you put yourself back in 2020 DATE where we were going 39% PERCENT your reura on a 245 1 billion dollars MONEY revenue run rate It's very hard to know what's the right amount to build and you have to make a decision and we The decision to air on the side of our consumers and sellers. Now, how would you grade Amazon ORG 's performance with employees, your colleagues, there has been some high profile. Yeah. That And when I started in this gig we had just create a new leadership principle to strive to be earth's best employer and I think we're you know we spend a lot of time trying to think through what that really means is broad and I think we've made a fair bit of progress but it's still early in my opinion but I still think there are Areas that we can keep improving. You know, and I think Yo PERSON the first one I I'd mention is safety you know I think that you know in our fulfillment centers that is the top priority and you know when you get into the details the numbers and outside of all the spin of it all you know we're Average there but we're not trying to be average. You know, we wanna be the best in the industry and the best in the world at it and that's a high priority and and an area that I'm passionate about and the team is passionate about. And I think we have a lot of work we can do to make our employees everyday lives easier. We are we've notified kind of a top 100 CARDINAL list of Areas that we can be better at that we're just metronomically stepping through and so we've made a lot of progress but we've a lot of work to do still. Jamie Diamond PERSON says he's preparing for an economic hurricane. The World Bank ORG just slashed its forecast for global growth. How do you feel about the economic climate I wasn't planning on giving any guidance to the cat. But super bad or super super bad. I think there's some things that are released to Amazon ORG that are useful to remember. You know, I I think the first piece is remember that 85% PERCENT of the of the worldwide retail market segment share is offline. And if you That that equation's gonna flip at some point which we do. I think it will it will flip over a long period of time. If you look at different downturns you know should we have one at some point. We've been through a few obviously in 25 years DATE that Customers change their habits and so, you know, I also think there's, you know, those two CARDINAL reasons, those two CARDINAL factors give me some optimism that even if we have a downturn that we have the potential to still grow. We have a road map that's, you know, Probably 3 to 5 years DATE long and we're gonna continue to invent Continue GPE to be in surgeon and we have a lot of work to do to get to where we think we ultimately can get for customers. No, when it comes to the stock as I mentioned, it has fallen significantly. Do you think investors are missing Thing or has tech just been overvalued and this also course matters to employ Significantly paid in stock Well, you know, look, I haven't been in Amazon ORG for 25 years DATE . I arrived at the company 3 weeks DATE before we went public I have never tried to predict what the stocks gonna do and anytime I've tried to a little bit I've been wrong so you know I think it's it's pretty hard to Hard predict what's gonna be in any short period of time. I do really believe that Benjamin, Benjamin Graham ORG , Max PERSON , him that in the short term, the stock market tends to be a voting machine, a long-term intense to be a weighing machine. I think if you, you know, we've been A lot of points 25 years DATE to be at Amazon ORG The macro factors are off and Stocks are down. Our stock is down. You can't really control that. You know, we have a concept we talk about a lot of Amazon ORG . You know in the ultimate output for a company a share price you know and then other big outputs of free cash flow or profit or revenue you can't Manage the outputs you have.
It's a free cash flow or profit or revenue. You can't Manage the outputs. You have to manage it. The input level and that's where we spend all our time and so if you do the right things for the business long term, things tend to work out. I think we've had very good returns for invest You know, expected to be true again. Do you see amazon strategy as fundamentally different from Netflix GPE in Disney and if so how People ask me all the time what is the key to being a really good investor I tell them it's a surround yourself with and work with The best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world. The people that I would like to have managing my money. At the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Companies know they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so software is come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is It because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. TC I think four CARDINAL most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? What are the moonshots at Amazon ORG that are capturing most of your time and attention? What is gonna define the next era of Amazon ORG ? I mean, is it is Is it something else? Well, you know, we have a unique way that we look at big, new investments and I'm not sure it's right or wrong. It just happens to be our way and we ask ourselves when we're considering something. Four CARDINAL questions. We we ask If it's successful can it be big and move the needle in Amazon ORG is it being well served today DATE Do we have a differentiated approach Do we have confidence there if not can we acquire quickly if we like the answer those questions we'll go pursue it with a single thread team that isn't distracted by the rest of the business and sometimes that leads to innovation investments that seem pretty obvious like you know when I got to the company Books ORG only retailer and then we expanded to music and video electronics and obvious people. Other times that process does not lead to investments to seem obvious to people. I mean, AWS ORG was something that people externally and internally thought was a little bit nutty at the We just imagine what Amazon ORG would be today DATE without AWS and and I think that you see the same thing here you know the there are so many significant investments we're making that I'm excited about I'm gonna have to constrain myself to a few but yeah I've I'm really excited about what we're doing in the prime video space I think Clearly on the right track there and building a significant business. That's interesting because Netflix PERSON also just announced some layoffs. Yeah. First ORDINAL subscriber loss in a decade DATE . Disney cutting back on costs. Do you see Amazon ORG strategy as fundamentally different Netflix GPE and Disney and if so how? Very bullish on it and remember we all the all the miles are a little bit different but for prime video we have 200 1 million MONEY plus prime subscribers who are you know get that entertainment for free by Of prime and and so we've a little bit different pricing model than some of the others but I I'm incredibly encouraged by what we have coming if you if you look at me we launched the show Reacher earlier in the year DATE was a huge hit we you know we the Hey Facebook season we we just launched new boy season which is are you a big boys fan with Amazon Vot ORG ? It's very good. Of course we have go to the rings coming up you know in Thursday DATE at football. So, I'm very bullish about it. We also, you know,
It's very good. Of course, we've go to the rings coming up, you know, in September DATE and Thursday DATE I'm very bush PERSON about it. We also, you know, we're excited about what we've done with MGM ORG . You know, I think some of the acids there will go very well with the rest of what we're doing entertainment wise. So, if you look at Warner Brothers Discovery ORG in Paramount ORG and Stars and Global WORK_OF_ART . They're building really Never forget the subscription businesses. So, I'm very bullish about that business. I'm optimistic that we have a chance to build a significant grocery business which is, you know, early stages for us I I'm excited about Kyper FAC which is our low earth orbit satellite that we're building. You gotta remember there are 300 to QUANTITY 400 1 million QUANTITY people in the world who have limited to know internet connectivity. I mean, just think about how different the Is when you don't have that type of connectivity and so I think that's a really significant opportunity that has some AWS ORG characteristics to it. I continue to be very optimistic about Alexa ORG . You're building the world's best personal assistant. We've, you know, 200 1 million MONEY So ready that are using Alexa ORG we're clearly onto something there and and then you are automatist driving ride healing Zooks that were building you know here in Bay Area LOC I just think with the way auto consumption is evolving I think that also is a Be really significant. Yeah, I don't know if I don't know if all of them are gonna be successful but if anyone of them becomes the fourth ORDINAL pillar for us on top of marketplace and prime and AWS ORG work completely different company. Just like we were when AWS Came ORG successful. So, I think they're very worthwhile investments and bets and I'm optimistic about it. You didn't mention Astro Hey But i mean our home robots gonna really Where is it? No. It's not really widely available for sale. What's I hope you get one. Okay. Thank you Everyone's very curious about Jeff PERSON 's role these days DATE . What kind of executive chair he really is. He said when he left that he'd focus his attention and energies on initiatives that he really cares about as at Amazon ORG but from the outside it looks like he's really focus Philanthropy ORG he's focusing on space what kind Executive chairman is he What you know Jeff PERSON has always gonna be involved and he has you know All very lucky to have been in Amazon ORG for 25 years DATE . I feel very lucky to have worked directly for Jeff PERSON . For 20 CARDINAL of them. And we have AA really close relationship and have for a long time and I think we share a lot of the same values about customers and how important is the optimize for customers and how high standards they need to be You know given how easy it is for people to switch and the importance of invention and speed and so you know I just feel very lucky to have had the chance to work so closely with them. So, is your relationship? I mean, he was your only For 25 years DATE right is your relationship Mentally different. Yeah. Of course, you know, every single job you have, the relationships different. You know, remember might the first couple years DATE I work for Jeff PERSON , I work is what we call the shadow then, what's really like achieve a staff That was different than when I was starting AWS which was different from when we got AWS going and it was you know a business that was starting to do well and it's different when I'm in the CEO role but you know the cost and has always been that we have a great And we collaborate really well. Amazon ORG is poised to become the biggest private sector employer. In the world second ORDINAL only right now Walmart ORG is is in that spot But Amazon ORG will probably soon surpass it First ORDINAL vote to unionize at an amazon warehouse I know you've been spending a lot of time at warehouses When you look at someone like Chris Malls PERSON who I think some people look at as this modern day hero who got fired, pulled off this union vote. What's your message to Like him. Your message to the folks who think maybe we should join a union. I know I think that in the first thing to be clear about is that employees get to make that choice whether they wanna have a union or not. They always have had that choice and it continues to be their choice and you know, we happen to think they're better off without a union for a number of reasons. Including the fact that, you know, it's it's much harder when you Union to have a direct relationship with your manager Get things done quickly. So, if you see something on the line that you think could be better for Your team or you or your or customers.
Safety and that's our intention. You made a huge mark On Amazon ORG with AWS ORG obviously. A mark that you want to make Still. I'm David Weston PERSON . We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio Stocked early enough all these precious materials you were just mentioning and we won the lucky side that our pronounces was spot on in a way forecasting what kind of material we would need and what quantity we would need The FTC ORG has revamped its anti-trust Into Amazon and buy some accounts is Are you preparing for an anti-trust lawsuit from the FTC ORG ? If you are a large company, it's growing as to a significant extent like we have. You have to be prepared to be scrutinized and and we have known this for some time. You know, many years and we have tried to run the company with that mind and knowing that if if somebody look, We will stand up to that scrutiny and I you know I think that's what we've tried to do in running the business. We can't control what, you know, you know, whether organizations bring different suits against us but I think if you look at our business, if you actually look at If you take out of, you know, take out of the equation that they're they're may not be the most objective, you know, leadership when it comes to amazon and that organization. If you look at the facts, you know, in our retail business, we're about one% ORG of the worldwide retail market segment share. And remember, 85% PERCENT of it is still offline and Work in our AWS ORG business. You know about to be how you measure it 95% PERCENT of the worldwide global IT Span is on premises you know and then we have a cloud business and then we have a portion of that you know we were leading market segment share in the cloud part of this We operate, you know, who we compete with, NWS ORG is really on premises. IT in addition to the cloud. So, you know, these are relatively small percentages of of the Reply and you can kinda step through all the businesses and I think simply because you've been successful in a few different businesses, doesn't somehow mean that you have a natural market power. It just means you've been successful in a couple Customer experiences but we still have AA relatively small amount of market segment sharing those areas. What about the SEC ORG ? You're being sued by them over third ORDINAL party data and how you've used it. Do you think in the past Amazon ORG made mistakes with letting employees in How those third ORDINAL party sellers were doing? Pretty good control. I mean, you know, we've, of course, disagree with the premise of that but I would say that we have very good controls with respect to the data that the different employees sets were able to see and by the way, I think that we can be better for sellers. You know, I I think that Yeah we can have better tools from the get started we give better tools from the manage what they're doing across their their different Amazon ORG units I think we can communicate there's a whole bunch of things we can do better and we agonize over every single email or communication we get from sellers and we do Regularly robust surveying and a lot more sellers are happy with Amazon ORG and unhappy with Amazon ORG and I think if you look at What they're able to do is you know as
A lot more sellers are happy with Amazon ORG and unhappy with Amazon ORG and I think if you look at What they're able to do is you know as a business by virtue of selling on Amazon ORG versus not a completely changes what Sellers don't really long for e-commerce software that exist in lots of places And it is not very expensive. What they love about selling on Amazon ORG Is that they get access to a hundreds of millions CARDINAL of customers and that completely changes what their prospects could be in terms of the businesses they're building. So, we have a lot of work to do there like we do in a lot of other places but I think we were very strong partnership with sellers. What's the view of the supply chain right now and how much pain there is going to continue to be and for how long? Well you know I think that There's a lot of challenges in this in the supply chain still. I mean, it's it's gotten better than it was but there are all sorts of challenges, you know, non-perishable goods, electronics, chips, it's still a really, you know, significant issue Sorts of businesses. We have worked really hard to open a lot more. Going to present some ports in the in the increase our capacity in getting products in but I think it's gonna be something that companies battle with for some time. You made a huge mark. On Amazon ORG with AWS ORG obviously. Mark that you want to make Still on Amazon ORG . I mean, in this new role, Gonna define the Andy Jassie PERSON era Well, I I don't I don't really think of it that way, Emily. I mean, I I don't think it's really about any jazzier or anyone person. You know, and and by the way, AWS ORG was not about anyone person. That you know, if you spend a time on AWS ORG , Is an unbelievable team. Not just an incredible leadership team which it is. But just top to bottom. And then the number of inventors and people care about customers and Operate you know something where it has to work almost like a downtown it's it's always teams and so I look at every single one of our businesses You know take our retail business or our consumer business which is the oldest for businesses 85% PERCENT of it still lives offline. Like I I think we have a lot of upside and a lot of growth and I think as much invention as we've seen Last 25 years DATE , you know, the time I've been there, I think it's it Looks small compared to the next 25 years DATE . There is a lot for us to invent. On behalf of customers and so, you know, I'm excited to be part of the team that makes that happen. You know, we are continuing to, you know, to increase the amount that we give back to the communities in which we have big And that really matters to me. I think we were responsibly do that and so, you know, it's it's it's a long journey that we're working on but I'm excited to be part of it and you know, Deter PERSON for a long time. Well, thank you for joining us and telling us about the way the journey is going so far. Thank you. Andy Jackie PERSON . Do you see that coming Call PERSON .
In the coming months DATE do you see that coming true Cop PERSON and wrong. Bloomberg PERSON . But the sign Alphabet sun Microsoft ORG suction adelaide IBM ORG 's Arvin Krishna PERSON micron technology Sanjay Mahotra PERSON and that's And that doesn't count Indians NORP running companies all over the world. So many Indians NORP risen to the top. Coastal ORG points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to Into one CARDINAL of the Indian NORP institutes of technology. It gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Three fourths QUANTITY of the immigrants receiving coveted H one CARDINAL B visas for the US GPE . And it's a Inflation is a terrible thing. Inflation you could tower. Info PERSON . I don't think it's a currency. I think it's a commodity. Today DATE , we're in and everything Bob PERSON . I'm Francy Laquat welcome to Bloomberg Front Row and there are Chen PERSON is a tighten of European NORP banking at UBS ORG he transformed the firm's investment bank he's now the chief executive of major Italian NORP lender unicredit over the course of his career or child has had to navigate numerous crisis and now is Rampant inflation and aggressive central bank tightening. Inflation is biting For low income or lower income families. Really difficult to deal with a rising custody of energy. The Italian NORP has also faced personal challenges recently including a dramatic and public legal battle with Santander PERSON over the robot attempt to hire him as chief executive. I will always be sorry for how it went this is another bank I admire a lot and that hasn't changed I think for me it was more about Confirming the facts. It was obviously an emotional roller coaster. From a family standpoint it was great impactful. TV interview since becoming chief executive. We talk about his new role at Una ORG credit. The impact of the war in Ukraine GPE . The challenges of being Europe LOC 's bank and that sent under debacle. Here's my conversation with Andre Alche PERSON . Andre Orchelle PERSON thank you so much for speaking to Bloomberg PERSON so you've been in the job just over a year was it everything you hope for more really much more yes not stressful Stressful but I like stressful I think that what has been great this year DATE is a way you can credit Welcome to me in two CARDINAL of the organization. It was full of passion, full of warmth, and you feel Energy of the people around you. People that want a new vision and new strategy, a new direction, and that ready to commit and own the future. It was absolutely outstanding. Did that surprise you? Were you expecting more sleep?
Future. It was absolutely outstanding. Did that surprise you? Were you expecting more sleepy bank? No but I looked at it more from the perspective of a banker numbers what needs to be done or is the value where it's not the value But when you arrive, you see the people and that makes the whole difference. So that's what makes it more emotional, I guess. Is this like What what keeps you up at night TIME Well the emotions are now very engaged and you feel a duty and a commitment to the people who are looking up at you to To take them in a certain direction That I think puts a lot of weight on your shoulders. Russia GPE . Well, first ORDINAL of all, for us, it's important to understand that we we have to remember that 95% PERCENT of the bank is not in Russia GPE . No. And we cannot commit the mistake of spending The entire time on Russia GPE where our emotion and the shock that we have taken Is probably driving us to do. So what we have done is we have a situation room that is fully committed to do that. We've all been skilled sets but we need from legal to tax to accounting to everything else And they work on managing our exposure towards Russia GPE . The rest of the team is 105% PERCENT to 110% PERCENT focus on running the rest of the of the equation When I look at Russia GPE separating it there are two CARDINAL orders of effects that we look at one is a direct shock from our exposure to Russia GPE . I think that in the last 2 months DATE We have a chip to reduce it meaningfully by about two 1 billion MONEY . We've done that actually. The team has done a great job without that costing the bank almost anything which was not to be expected. And at the same time we have understood very well and in a granular way what the risks are And we think that in Q one we took a very conservative set of provisions to try and insulate ourselves the most possible from the thermo effect from a degeneration of that situation. The provisions were quite large and the market took it quite well. Is that how you would describe it? I think so. I think we what we did is during those 2 months DATE , we were able to articulate In a detailed way what is our extreme lost scenario for Russia GPE ? Converted in in numbers on hit on capital it's about 130 CARDINAL business points of capital And in the first quarter DATE we took about 195 CARDINAL to be exact. Do with this units are you frustrated that you kept you keep on getting asked over and over what will happen to to Russia GPE and then please there I think that anyone who has a large presence in Russia GPE or significant presence in large in in Russia GPE 's being asked it's normal I think we believe strongly that Let us show you what we execute and let's talk about it then We have reviewed the situation. We have a number of options on that we could pursue. Very much affected by the next wave of sanction Who have a counterparts what we can do what we cannot do and at the same time we should not forget that we do have 4000 employees in Russia GPE Have 1500 CARDINAL corporate clients and what people sometimes forget is that 12 50 CARDINAL are actually Europeans NORP who are trying to go through the same thing that we're going through as a bank which is deal with a situation the best way possible. Do you have a preferred route And actually is there a situation where you just say like we need to get rid of it. What do you say to the critics? Let's say Andre PERSON you should have gotten rid of this. For the cost. I think I review is Number one CARDINAL my preferred route is not necessarily root but can I can be executed in the same way that we have given detail off how much of our crossbow exposure we have reduced We could have reduced a lot more If it wasn't for successive ways of sanctions that have closed the window on hook we can deal with What transaction can we do and in which timing The same applies to our local presence. The solution very much depends on what is allowed to be done by a complex web of sanctions that we have and by
To our local presence. The solution very much depends on what is allowed to be done by a complex web of sanctions that we have and by who are our counterparts. We believe very strongly that If we want to be consistent with what VU has decided We need to consider all the options in a way that they reflect fair value because this is a primary objective for Providing. Right. Too much value to accounter part. Let's put it this way. But he's not justified and at the same time balancing what is leading the best interest of our stakeholder and investors. How worried are you about inflation about the cost of living? You're so tied to the Italian NORP economy. And this is an economy In terms of energy, in terms of also exports and imports with Russia GPE . That's that's one of the most closely linked. We are tied to the Italian NORP economy We're less than people expect because we are about 40% PERCENT of the bank I think in my first year DATE of operation being tied to Italian NORP economy has been great. Good gross good dynamics stable direction of travel. Is that the driving effect? It is for drag effect. As we look forward, there will be a deceleration. We have two CARDINAL central scenarios for ourselves. One CARDINAL is a Slow ORG down. And the other one is a depression. At the moment we see a significant slow down. As the central scenario although Has not been affected at all basically over effects be on prices So what we're seeing is inflation being the precursor of more. Inflation is biting We see for low income or lower income families. Really difficult to deal with a rising custody of energy. We also see But for companies that had investments or that were dependent on energy or on grain to a certain extent the whole value change has been completely alright Destroyed and so they need to reassess what is their position Change for sources Redesigned their models But at this point in time this translate In a slowdown I've investment. We haven't seen anything else. We do believe that going forward it will be a lot more disruptive. When you think of cutting edge technology at sea you might be thinking of stuff like this But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. About three% of all the world is huge I'm from shipping. Output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People. You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Do you worry about a policy mistake from the ECB if if you have this possible recession or environment They don't raise rates. What happens to inflation and what happens to all of your Italian NORP clients? Or European NORP clients Well it's a very tricky economic environment for ECB but also in the US GPE because on the one hand you have inflation but the inflation is generated by a specific sag
Well it's a very tricky economic environment for ECB but also in the US GPE because on the one hand you have inflation but the inflation is generated by your specific segment of the economy A energy I'm not that sure that raising rates a lot will cool that down because it's very concentrated and it is linked to a dislocation between a friend demand The rest of the economy however We all agree that he's slowing down and maybe tilting into recession Rates Issue. So, it's very, very tricky to manage and yes, we're all concerned to finding the right balance. I think that getting to more neutral stance towards the oh is probably okay. The moment you go up a lot from there, it depends very much on what the rest of the economy is doing. How much of a warrior is that? Well, you always have a bit of that every time that there is a crisis there is a so-called flight to quality and that happens. I think that like for many other things, we need to see how old the economies of Europe LOC are gonna perform in fact During this this environment And I think what I was telling investors the other day DATE is if you look at Europe LOC today DATE . And we are 5 months DATE into the year You do not see any deceleration of economy You seem flation, you see a rising rates, you see some very worrying sign You anticipate a social and an economy impact from the war but you're not seeing yet. That kind of degeneration that the market is expecting. What is the market looking at? I mean, this is like the market seems to be all over the place. We could be up, we could be down, or we're living through a correction. Well, I think I I read Any interesting report from one of the organization that covers us but we'll remain on named here but that was us to do a parallel between environment of today DATE and the 70s on inflation Which tells you what kind of mood and and worry exist out there. Personally I don't think it's gonna be that extreme because I think there are a number of amortizers I mean if you look at the facts Italy GPE has To Rebuke or re The average in of its energy to a significant It's value change so we now go to Another places to get a lot of gas or we will be going if you look at Poland GPE they have found a way to deal with Norway GPE if you look at Bulgaria GPE they connected their pipes towards Greece GPE and the gas for the rice from there so Europe LOC is adjusting The question is how much time there is but Europe LOC is adjusting. The kind of earthquake way because you could see if there's oil and gas bargo from Russia GPE what happens to this continent? I think it depends on timing. This is that's why the The economic environment that we're looking at it depends on timing and extend of the Breakage away from Russia GPE and to a certain extent from Ukraine GPE If that is done very fast and completely As you said the impact will be quite dramatic if that is done over a Significant longer period of time the impact will be less dramatic do we have A significant alarm period of time. I don't know. But that is the key. And we always talk about gas but we also need to understand our independence on our commodities. Nicole ORG , Lithium ORG a whole of everything that the entire value chain was predicated on connections with Russia GPE and grains connections with Ukraine GPE That changes from 1 day DATE to the other the shock is very high You were talking about a political stability in it too. We were joking about the drugy effect. Do you worry? Is that actually politics in Italy GPE ? Has always been quite messy that this political instability comes back and hurts your bank. Well Italian NORP or politics in Italy GPE but forever Italians NORP have been able to go through it And A lot of trust in the country and and I believe
I have a lot of trust in the country and and I believe the country has In a certain way And in a way I am much more nervous about the more general impact on economy in Europe LOC the more general social impact on the account on Europe LOC immigration things like that that are going to Not only but the broader continent. How much do you like taking care of risk? So I wanna talk about a little bit about what you're doing inside unicred. Do you feel like you're a risk manager? Is it about also cutting costs? So how do you you have one of the most generous plans actually for investors out there. How will you stick to it? Well I think Stick FAC to it I think We have said very clearly that we felt that the execution of uni training unlocked would yield to a certain level of profitability A certain level organic capital generation based on that we could have very generous. Yes. Distribution to our shuffled. Was that free Russia GPE ? That was pre-rush. So Effectively the plan anticipated that our capital will remain stable through a period at the top end of our peer group and that we would distribute only the excess capital we would generate every year DATE . So, in in that way, it is prudent. It is boardinated to us executing the plan and all of his slavers at the same time because of where we're coming from There is a lot of value to be created so that is what generates the distribution that we have. Then we get to the invasion of Ukraine GPE . At the moment what we have done is we have changed our macro scenario reference from what it was before to slow down. From GDP standpoint it brings about two to two and a half CARDINAL points less surgery to be gross than we were anticipating from an inflation standpoint it takes to a couple of percentage point more inflation than we were anticipating with peaks in certain countries obviously In that environment Still execute let's say the uni credit unlock plant as it is if we keep our eyes on the ball and execute as we should be because on a way the GDPD celebration is in part compensated by higher rates which are good for banks like Hey guys crucially important and I think we've moved from Attitude from it's an indulgence a waste of time almost an illness that needs a cure for something Universally important to human life Mysteries surrounding its necessity and utility have only just been recently uncovered Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting feel because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understanding It's easy to memorize things that makes you smart if you can But if you wanna be wise And why to use that information? And that's what you bring figures out while you're sleeping. Bloomberg PERSON 's Amanda ORG Had one CARDINAL of the most colorful careers. I don't know if that's the right way to describe it. I don't know how you would describe it. It's only in the 5 years DATE . It's not been dull or boring following your career moves. Do you feel vindicated? That you were awarded that amount of money? With what happened with Santa I think the I will always be sorry for how it went. This is another bank I admire a lot and that hasn't changed.
For how it went this is another bank I admire a lot and that hasn't changed I think for me More about Effects The truth about a new existed And that has been done and it's time controversial. I mean you will find it black or white. Through the process that has happened That for me was very important because a number of stories were were written at the time. What happens then I mean obviously Santa GPE has appealed we'll see But for me the important point was that Matruce ORG is very facts are there and at least mentally I have moved on. 68 1 million QUANTITY without never starting a job but also to try and understand what labor laws and everything like that works. Do you think it's changed? The way we look at banking walls and Know if it has changed what I know is that we shouldn't forget that Banking is a highly regulated industry as a as a result of that senior jobs have a very large component of deferral in their compensation Invite your kids 7 years DATE And more than 50% PERCENT if not 16 CARDINAL certain cases of your compensation is deferred over 7 years DATE . If you do the math that means that at every point in time you're gonna have between Four X CARDINAL of your compensation Deferred Ehm but it's your index to the share price of the bank where you are and if it goes up it's three CARDINAL four X. Yeah. Becomes even more. Verdict PERSON is when you change organizations. What do you do You either have the new organization that That Deferral Or you don't move Because it in effect that deferral is your entire savings. So, I do think that although these are large numbers, they need to be put in context of how they got there. Usually in most cases, in all cases, Organization ORG who has Assumes that liability deferral. So, that number is liability and deferral. Is plus a few other things that occurred because of a case but that is what it is. It was an emotional roller coaster. Is it something that you've put behind or is it something that you don't think about? Well, at the beginning, it was obviously an emotional roller coaster From a family standpoint it was quite impactful and I think Personally given the estimate for that bank it was quite impactful I think the the important point was I Once I went through the preparation of the case. I detached and I left other people deal with it and it was quite fortunate. But those people were excellent. And then I trusted the process a lot of people told me not to trust the process but I did Any thunder dub being horseball. And you're talking me a little bit about your working from home policy. So do you think COVID has changed everything? Is it problematic for a bank to let people work from home? Let's say that what COVID has done both from a standpoint of clients and for the standpoint of employees is More remote Gile. Flexible. I think I think that is not a bad thing. I think it has taken away FaceTime To extend I believe strongly that being at work is important That's how you establish the culture. You train people That's how teams can interact with each other and brainstorm and come up with a good idea. On the other hand and we had started to do something similar at UBS ORG at the time You need to give people the flexibility to organize their lives and you cannot say it's Five or it's whatever it is and that is it. So, if you allow that flexibility for people to organize their lives and if they need to take a Friday DATE morning And then see the soccer match of their children And then On the Friday DATE evening TIME . That's their their choice but I don't think you can replace human interaction brainstorming teamwork you know if you
Evening TIME . Their their choice but I don't think you can replace Brainstorming PERSON teamwork. You know, if you look at the agile way of developing our new our new initiatives around IT. Come from representative from business, technology, compliance risk, all being in one CARDINAL room, and instead of saying you do pieces, how do we resolve the mortgage product? You can do that in the office you can do that remote talk to me about attracting talent so do you do you worry about you know some of the bright young minds going to Jake and Morgan Golman Sax ORG because they pay more would you worry about them going to crypto or Google because it's exciting Well I think what I have found is that Right minds are By money as they are and probably more by Version PERSON what's for challenge what do I learn Is this company doing things that I am proud of Care for the environment. Do they care for the communities? Will I be followed in my career and developed which is why we just launched the These things especially in the early years DATE Quite a lot of space in their decision As they move through And they come in and they move through when what thick spaces how do you treat them how do you track their career manage their career do you give them opportunity that's why I think we are very fortunate I can have A young person from Bosnia GPE who start in the leading back in Bosnia GPE does a tour into Germany GPE Serbia GPE and then A skill set that has been refined goes back and it's a bank in Bosnia GPE not many groups can do that and I think that's one of the attraction that we have. Would you like most about being chief executive? Trying to make a difference I have been told by many people that no, you know, this cannot be done or this is difficult. A little bit my chance to try and do what I think I it's right What I think it's right is usually I get it from talking to people who any fact can make a difference to unicorn and to be 80 1000 CARDINAL people that are there and look back and say yeah I help move it from here to here And I helped What are our principal what we stand for? I think that will be a win. Chief executive job came up? Would you be up for it? I love you and pray too much. Thank you so much. Thank you, Francine PERSON . A lot of the satellites have propulsion systems that you gotta move to get out of the way of each other or change their orbit a little bit. It's a service that you guys offered to help these companies know how to maneuver their machines. Yeah, we offer a collision avoidance survey. It's a subscription service. Send you an alert up to 7 days DATE in advance if your satellite's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving satellites around but it's it's sort of like a harder problem now. Just because we've installed so much more hardware in the space. But you have a big collision. It creates a clouded debris and now all the other satellites are flying through this whizzing mess of debris as we add all of the new satellites in space. The risks of the collision, the likelihood of the collisions going up.
Access the financial world on demand Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Hey Facebook You watching the best of the cutter economic forum I manage cranny in Doha GPE this week DATE 's event which was powered by Bloomberg PERSON brought together global business leaders and heads of state to tackle some of the world's most pressing challenges from small supply chains and escalating On Ukraine GPE . The next half hour TIME we'll bring you all the highlights from the most important interviews and conversations beginning with it on musk the world's richest person spoke to Bloomberg ORG 's editor in chief John McElth Waite PERSON about his head kind plans at Tesla why he thinks a recession is inevitable Course is ongoing bid for Twitter PRODUCT . With respect to that the Twitter PERSON transaction there's a limit to what I can say publicly given that is someone who was sensitive matter Measured in my responses here. Is not to generate incremental lawsuits. Hey Facebook sometimes manage to overcome Yes it deposition minimization is I think important So have Twitter PERSON given you enough information? Well there are still You probably read about the the questions to other Number of fake and spam users on the system is less than five% as to reclaims. Which I think is probably not most people's experience. On when using Twitter PRODUCT . So we're still waiting resolution on that matter. And that is a very significant matter. So We're we're waiting resolution on that. And then of course there is the question of Will be the death portion of the round come together and then will the Sheryl ORG 's vote in favor. So, I think those are the three CARDINAL things that stand in the you know, if that needs to be resolved before the transaction can What about the general state of the economy? Does that weigh on you when you think about this? I mean you just described it. You have a super bad feeling about the economy. Are you still in that position? I've just said you earlier. Joe Biden PERSON has just come out and said that A recession in America GPE is not inevitable. How do you feel about the economy Well, I think it recession is inevitable at some point. Ask whether there is a reception in the near term
Best weather there is a reception in the near term I think that is more likely than that. It's it certainly isn't this. It's not a certainty but Appears more likely than lunch. Or what do you think I'm I'm I'm I'm with you With the Twitter PRODUCT bid which is in a you are one of the And fastest growing investors in China GPE Tesla you've talked about it being a third ORDINAL Twitter PERSON that kind of public forum for free speech The Chinese NORP historically don't tend to be very enthusiastic about free speech are you worried Whether you can keep those two CARDINAL particular horses running is is buying Twitter PRODUCT gonna get you in trouble with the Chinese NORP ? Well Twitter PERSON does not operate in And I think China GPE does not attempt to if you HVA was the Free speech at the work of the press in the US GPE at as far as I know I seem You're not under pressure to at Bloodberg PERSON to From China GPE . So, I think there's I I don't think this is gonna be an issue. And in terms of generally of that issue of freedom of speech and Twitter PERSON you've talked about Twitter PRODUCT being making it even freer and letting more people onto it. Is there a limit at all to to who you think should be allowed onto Twitter PRODUCT ? My aspiration for Twitter PRODUCT or in general for the digital town square would be that it is as inclusive In in the border says the word as possible That is it is an appealing So I mean I do like to get like 80% PERCENT of That's it North America LOC and perhaps I don't know half CARDINAL the world or something ultimately on On Twitter PERSON it's in one or another And that needs, that means it must be something that is peeling to people. It it obviously can't have your place where they feel uncomfortable or harassed. Or there's something not use it. Can you set the record straight on one CARDINAL thing which is this issue about the layoffs? I think Said PERSON initially that Tesla GPE 10% PERCENT of the workforce will be cut then 10% PERCENT of salary would be cut then salary would stay flat and overall headcount would go up what What is the number? I know there's already I think being AA lawsuit The 10% PERCENT is is 10% PERCENT the goal to reduce the workforce. So what is the number that we should think about or that your planning? So it has the is reducing the salary work for us are roughly 10% PERCENT over the next Probably 3 months or so Expect DATE to grow at our hourly TIME workforce where I expect clear that we expect to grow out around hourly TIME workforce but we We grew very fast with on the salary side. And we we're a little too fast in some areas and so it requires reduction in Workforce GPE . About two thirds CARDINAL hourly TIME in one third CARDINAL salary so I guess technically a 10% PERCENT reduction in the salary report is only roughly at three three and a half percent DATE reduction in total headcount Egypt GPE 's finance minister doesn't think we're in one yet but does reckon the economy is slowing. I caught up with Muhammad PERSON mate. No we are not already in a recession But we have now And I don't really think of economic Wallet PERSON bank Have reduced their expectation for economic growth but If the current direction To be continued and Be even escalated I believe that
Eh to be continued Might be even escalated. I believe that and effectively we will go for recession. Global economy. Package of elements will work together leading us to recession High cost of financing Nazare Developing PERSON countries in this world which can contribute heavily to economic growth will have to Suffer PERSON from the negative impact which will be at the expense of their ability to grow Are you in shock Or panic over fuel and food at the moment. Panic rather than a shock I believe that Since we'll accelerate further it will materialize to a big shock. The consequence Of food and fuel is 13% PERCENT core inflation sir It's over second half of the year to get better. Do you share that view? Do you think inflation has plateaued or topped out? Expectation is to increase not to decrease. Significantly It depends Hey If oil prices will continue this event Food prices continue to this trend if the federals and other central banks will increase interest further We will go for further infilicia particular At you know we may start to see in addition to what we have seen until now Difficulties ORG to get financing So it's 13% PERCENT on the core at the moment how how bad could it get If you have talking about Egypt GPE and particular indeed sir 13% PERCENT You know will depend on how much inflation we are importing this A significant part why because if inflation accelerate further in Europe LOC and United States of America GPE as a result of all these factors And in addition to that higher interest rate will add to higher cost of financing this will mean that we will be negatively impacted we hope that this will not be materialized in the coming So we should What are they further And we don't know what will be there decisions very soon but to the act to in Felicia PERSON . So you are worried about further significant From the central bank. I hope that Egyptian NORP economy to grow and high cost of financing it will be a problem for the industry for the For the economy but eventually inflation is a core business infection control is part of the core business Up next the deputy chairman CEO of the He thinks the war in Ukraine GPE has put in the oil prices. This is Bloombad GPE . I recently seen during this period of time is that communicating via the
Communicating for staying in touch. People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet revolution I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. We've got the information This is a level of uncertainty that we haven't had to deal with. Television and radio Energy was of course the major theme of the week DATE and the deputy chair and CEO of the Kuai Patrodium Corporation ORG told us he thinks the war in Ukraine GPE has only highlighted how important energy is to the world shake Nawaf Al Saba Rackings the conflict has put a $30 MONEY barrel premium into the oil market he caught up with my colleague Francy Laquar PERSON We think that oil is there for the long term in terms of even any energy transition. So, We maybe concerned about what obviously the next 18 months DATE is gonna do for financing and and for our cash balances but over the long term we're quite confident Good enough prices for us. Yeah. The war in Ukraine GPE . Does that get pushed back? A lot of people have made before the the Ukraine war was to say this is gonna be a war against fossil fuels and that we must stop oil production. Well, the world's using more carbon now than it ever did before. And This crisis in in the Ukraine Next LOC to all the humanitarian issues that come with it Shows you that energy is required to fuel the future and hydrocarbons have AA big role to play now can we make the hydrocarbons cleaner and and more efficient absolutely that's how what we're trying to do and that's what we're investing in whether it's through Capture ORG utilization storage using carbon as ER processes or really abating the carbon footprint of At the lowest Footprint PRODUCT . Now, we need to stay there. That's gonna require a lot of investment. It's just bad See more investment in the short term or no. Continue to investment. That is spring DATE investment. Overtime you're seeing a lot of us also continuing to to to produce now four four CARDINAL companies like
Overtime you're seeing a lot of us also continue to to to produce now Companies like KPC ORG we look at the long term so we're investing right through the cycle but companies that that don't do that Putting in more investment right now. Going through the roof it's going to be an issue with the oil price and the energy price is so high right now when you're expecting these prices to stay wise I see AA war premium of about $30 MONEY in the current price right now. That's but for the war and in Ukraine GPE , you probably be seeing About $89 MONEY barrel oil which is not that high. Over the past it's it's actually you know it takes you back to the the last thing that Somewhere in the $ 67 MONEY range which is still comfortable. The energy intensity of the world economy is about a third CARDINAL of what it was about 20 years ago DATE and it continued to go down so oil prices yes they do impact Economic growth. Has diminished. Anywhere. We're getting the same calls from our customers say demanding the same amount of oil and some cases of a little bit more. Up next Steve Mnuchin PERSON on why he has a lot of confidence in Jay Paul PERSON in the fight against inflation this is Bloomberg PERSON . No one covers the world like bloomberg PERSON . In the coming months DATE do you see that coming through Cop PERSON and wrong. 120 CARDINAL countries the moment news breaks 24 hours TIME a day. Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials Analyze Marcus You can enter phrases Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand. Hear from leading economists Policy makers. And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Welcome back to the best of counter economic forum former church secretary Steven Mnuchin PERSON says inflation in the US GPE can be brought under control I do have a lot of confidence in in chair power by the way it's fun I can now talk about the fed ORG I wasn't allowed to talk about fed ORG policy for many years DATE you know I I guess my by most Advice GPE to the administration is don't do anything to shock the economy So, they had been talking about raising taxes. They had been talking about making different changes. Now, now is not the time to put any additional shocks. Things like gas tax on the margin may help a little bit but this is really now the federal resource job and the administration needs to be Not to get in the way. I do think, you know, the number one CARDINAL thing the administration can do And I think it's not just them. It's obviously other.
Number one CARDINAL thing the administration can do And I think it's not just them it's obviously other world leaders is we need to find a political solution To this war. Military solution alone is is not going to be what stops this. You have confidence in chairman Powell PERSON whom you know well Having work together with him and other members of the federal reserve the reality however is that financial markets aren't certain whether they have In Sherman Powell PERSON there's a growing consensus that the federal reserve ORG isn't raising rates fast enough Credibility with it's Perspective on inflation that it was transitory Two CARDINAL questions do you think that the federal reserve ORG needs to raise rates at a faster clip than they have outlined for the American NORP public and for that matter for the world And Will it take to restore that last credibility Well, let me just say it wasn't just the federal reserve. The administration also Talking about inflation would be under control. So, you know, I think from the Fed ORG stamp point Hindsight they clearly waited too long but having said that when you're managing the economy near the federal reserve I think you have to balance both sides of that equation I don't buy that the Fed ORG has lost credibility I think the fact that the Fed ORG moved in 75 CARDINAL basis points which a Ago PERSON is not what the market expected. I think chairpower is now signal. Another 75 CARDINAL basis points. I think if you look at the dot plots which I never was a big fan of these dog plots but that's another story. You know, I think the market understands that expectations are the fed ORG is the Gon ORG na raise rates. I think the portfolio is just as important and they're they're beginning to slow that down. You know, look, a year ago DATE , I said, we're gonna have ten-year DATE treasuries, three to three and a half percent CARDINAL and people fought that was really high. We basically have 10 year DATE treasures at three to three and a half percent CARDINAL If the market really didn't have credibility in the federal the long end would be a lot hotter than it is. Even if Europe LOC enters one he's still bullish on the region. Who have been Ibrahim Al Mahmud PERSON To my colleague Franci Laquar PERSON . We could go into a recession at some part of the world maybe in Europe LOC I had commented that we might go into our recession in Europe LOC because of the energy prices of pressure But also I have a positive review on Europe LOC and General in the long term. Europe LOC as a destination of a lot of talent They have a very good education system It's a tourist ticket destination as well And they have on top of this they have also an advanced program in the renewables and this is will give them an advantage over Other you know, countries. It might be a little bit difficult in Europe LOC but in the long run I'm bullish about it. So is Europe LOC at the moment your biggest worry but also your biggest opportunity if you look at the part of cash. How much you wanna put in Europe LOC compared to other regions in the world? See from from 2018 DATE once we have an answer or We are we were very vocal about our concentration in Europe LOC . And at the same time we have said that we will not be stopping investing in Europe LOC . We will be very selective. But we are going full speed and and the US GPE market and Asia LOC . We have a you know at a friend's Location ORG in term of geographies and we would like to Location ORG between the geographies. But again, Europe LOC , we will not stop investing. We will continue investing. Where I have, I wasn't in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technology space There in Europe LOC . I I think at some point it really.
I wasn't in Europe LOC recently and I'm meeting and I have noticed a lot of activities and technologies based In Europe LOC . I I think at some point you're looking for assets, infrastructure, assets in Africa LOC . Is it still the case? Yeah, of course. I've been if we can deploy more in African NORP and for a structure would be a fantastic. We have been investing and renewables as well and and Africa LOC and we would like to do more It's it's a little bit in a slower pace and other you know a countries But we are trying to find our partner to deploy more in Africa LOC . Anything with Russia GPE so you you have an I mean actually AA pretty sizable and considerable assets in rush hour. What will happen to them? Status we are not investing more in Russia GPE at the same time to be practical you cannot take it I know some some companies have announced to to exit it but and in reality they couldn't We are monitoring the situation in Russia GPE . We are in full compliance with the international sanction. We are our team on top of this in a daily basis to make sure that there are I'm betting any any update on the sanction But we always wish and hope that this is will be settled very soon for the sake of the people of of Ukraine GPE . Or are you in touch with the Russian NORP government about some of these assets? Naturally right now but but you know we have a big a big investment in Rosanov PERSON as you know Rosenth ORG itself is not undersanction. Of course we have a fiduciary 2 hour TIME future generation of course we will be in touch of them for for the dividends that we we deserve But any further investment now What do you do with crypto right now? So, it was, I mean, it's up. It's down, depends on stable coins or or other ones. Are you interested? Send us a class? No, group two CARDINAL , no. A blockchain yes But we have very clear review on this and and our team and and the technology space are exploring about opportunities in the blockchain. And that's all from the Carter Economic Forum ORG right here in Doha GPE . You can find complete coverage of the event including full interviews and articles. The destination, Bloomberg PERSON . Com. This is Bloomberg PERSON . People ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest investors in the world the people that I would like to have managing my money that the start of the internet Solution. I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio No one covers the world like Bloomberg PERSON .
No one covers the world like bloomberg PERSON . Seven% in the coming months DATE do you see that coming true 24 hours TIME a day. Bloomberg PERSON . Bloomberg PERSON has enhanced search on the terminal to deliver what you need when you need it now you can simply type phrases in everyday English LANGUAGE in the command line Compare financials People analyze Marcus You can enter phrases. Or ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. China GPE slows the fed ORG worries and former President Trump PERSON strikes back. I'm David Weston PERSON . This week DATE 's special contributor Larry Summers PERSON of Harvard ORG on where the housing market is headed. I do think we're Words. In the future with respect to housing. The Institute of International Finance ORG on the risk and the opportunity of zombie companies. Money that's being spent to keep zombie companies afloat is money that could be more productively deployed elsewhere. It was a week DATE of signals. Some subtle and some not. Doesn't seem likely to fix. And she is confronting a number of both you know short term and long term challenges right now I probably the number one CARDINAL thing is the poor performance of the economy. Former President Trump PERSON kept up his attack on Republicans NORP who supported his impeachment though Congressman Liz Chaney PERSON of Wyoming said she wouldn't stop even after she was soundly beaten in her primary. I have said since January 6 DATE that i will do whatever it takes to ensure Donald Trump PERSON is never again anywhere near the oval office and I mean it. And there was nothing subtle about the inflation signal we got out of Great Britain GPE coming in over 10% PERCENT I'd go to the UK GPE where you're seeing an explosive move higher in UK GPE guilt yields Tom PERSON and I don't think I'm overdoing it using that language Becoming entrenched. Reading the minutes TIME you have to feel that this is a sort of a doveish lean and it supports chairman J Powell PERSON 's tone at the news conference following the June 27 DATE meeting beneficials noted that some Of the economy notably housing we're starting to slow as a result of higher interest rates And if you wanted confirmation of just how big is those fed minutes were just take a look at the markets this week DATE with the S and P five CARDINAL Shooting up on Tuesday DATE when you fall back down to earth and beyond on Friday ending the week DATE down one. Two% at 42 28 DATE and the Nasdaq was even worse again climbing nicely early in the week DATE only to plunge on Friday DATE ending up down two CARDINAL . Six% GPE help no doubt by And just under three CARDINAL At 297 CARDINAL . To help us understand what the market may be trying to tell us welcome to Bob Prince PERSON he's co chief investment officer for Bridgewater Associates ORG and Ed PERSON Hyman share of Evercore ISI and vice chair of Evercore So, walk on both you back to Walsh St. It's really a pleasure to have you and let me start with you. You follow the economy and what's going on with the economy. We've talked about the markets. We've talked about the fed ORG . What's the economy telling Well, the economy, it has two CARDINAL parts to it. Obviously, one CARDINAL part is what real GDP is or
The markets we've talked about the fed ORG what's the economy telling us Well, the economy has two CARDINAL parts to it. Obviously, one CARDINAL part is what the real GDP is or auto sales and there's inflation An inflation is by far the more important part right now but on the first ORDINAL part Economy is doing okay. As you know, we serve a companies And our retail survey dropped sharply this week DATE but still pretty elevated Housing is really getting hit. But on balance economy is doing okay I think it's probably going two CARDINAL or three% but headed to one% The recount. I'm sorry. Bank loans came out this afternoon TIME and they're up 11% PERCENT now. And retail sales this week DATE we're you know pretty decent On inflation which is much more important I I'm pretty convinced that inflation is slowing Of oil prices came down gasoline prices came down And In the weeds used car prices dropped about three% in the latest month DATE And we survey Retailers pricing power that's now plunging you've heard the stories about the inventories being high and we've been tracking that for a long time it's now really coming down. But the most important part and we don't give my state on this or wages. And obviously the labor markets are very tight But they had from the conference board this week DATE A measure of CEO confidence with almost a record low. And then another survey That showed 80% PERCENT of workers We're concerned about losing their job. Go figure that. But we serve a employment agencies every week DATE And ask them among other things about wage pressure and that's now pretty clearly hooked down So I think you're beginning to see some moderation in wages on top of you know prices now cooling And economies calling So Bob Ed's PERSON season started to come down. Questions how fast is coming down but starting to come down. How do you see it? And is it coming down enough and fast enough so the fed ORG will not Much further in red hikes It's definitely on the down but the question is where is it settle out The markets are discounting The markets are discounting two and a half DATE And you know we're coming down from six So, or higher on the core, right? So, but there are really two CARDINAL big imbalances in the economy right now that are need to be resolved through this tightening cycle and we're we're still in this tightening cycle It's it's too early to really see the effects. It hasn't been that long to see the effects and so chances are you're gonna get more that weakness as you as you go along. But there are there are two CARDINAL big imbalances in the economy right now that that they're gonna have to be All one is the level of nominal spending in relation to the to the output capacity of labor Over the past year DATE , nominal spending is up 10% PERCENT . And incomes are up 10% PERCENT , and if incomes are up 10% PERCENT , that gets spent and you get more spending at 10% PERCENT . You gotta bring incomes down And if incomes are growing by 10% PERCENT but labor can only produce goods at the rate of four% you get a six% NORP inflation rate And that's the basic that's the first imbalance and that's the basic cause of the inflation that we have right now. It's really not the supply chain. It's just too much spending Which came from the monetization of government data and the fiscal stimulation. The second ORDINAL imbalance is the level of nominal spending in relation to bonyards. So nominal spending is even higher above bonus than it is above output. It's you know, seven, seven%, above bonus. So, it's the highest in 60 years DATE . So, if, if, if Spanding WORK_OF_ART , if people's incomes are growing Well beyond bony yields it's very easy to make debt service payments and even if you lose your job or money prices go up or something you can get credit so that the the credit numbers it is referring to loans up 11% PERCENT You know that's a bad.
Loans up 11% PERCENT you know that's a back On the economy and spending. So, so it's it's the high level of spending an incoming relation to interest rates and and labor labor production And it's the availability of credit Sustain that. To bring about an equilibrium. Quickly there. It's one of the issues here. Where did you say that's the hardest get your arms around? Where are with wages and that wage price spiral? Because in fact, if we are gonna have continuation, people are gonna wanna make more money, they're gonna go to their bosses and say, you need to pay me more Well CEO's now really bearish So they're not gonna be happy. If you have a CO one but your Bob PERSON and I think about the same way. But money growth has been slowing for about 18 months DATE . We'll talk about that because it was growing gangbusters for a long time. Right. But you're saying it's turned around. So, in the conventional way, you had the checks you had the quantity of easing in low interest And some money growth got up to almost 30% PERCENT . Which is obviously extremely fast and that's why you have the strong number growth. Now, with figures I got this afternoon TIME on Bank Deposits LOC , Mardi Gras PERSON is well less than five% And so we've set up the mechanism for this novel growth which is way too fast To slow down but that's what has to happen and obviously, this is a really interesting thing. If it slows down, Come out of real growth or at a prices. If you have your 10% PERCENT normal growth which everybody can understand I think Right now it's about one% ORG real and a nine% price right and if you go to say five% nominal What's the mix then? Right Should that fix the inflation problem or at least take us a long way to be fixing it That your total in an economy there your total sources of funds is your sources for spending and there are three CARDINAL sources there's money There's credit and there's income Right? And so when you get to tightening a monitor policy, they're contracting money. And that's absolutely right. The first ORDINAL effect of a contraction and money is on asset markets. Because if you think about the printing of money by the by the fattering of the central bank they print the money and then they go buy bonds or they print the money and that money then goes into stocks so that money had more most directly effects of financial markets Credit more goes in to spending, right? Because you know, you you take out an auto loan to buy a car, you don't take out an auto loan to buy a bond and the fed ORG doesn't print money to buy a car, they print money to buy financial assets. So, so what you have is a push pull The contraction in liquidity from the central bank is a drag on the financial markets While they're expansion of credit Support the spending. And so you've got you got that work in both directions right now. Well, that's interesting to me at least credits going up. That sounds like it's good. It's gonna spur growth. But that makes Sound like that's actually gonna make me inflation Does the fed ORG need the credit to come in so probably so in my view of it which is a straight Milton Freeman PERSON take of it of those three CARDINAL pieces that Bob PERSON pointed out The first ORDINAL one is where it starts. Is the money growth I track global short rates. It's a global economy and they've a higher impact on the US GPE economy than fed funds and they've been going up for about 18 months DATE . Same time that money grows has been slowing. So, I think we're pretty deep in this and we had a pretty good drop in the stock market to your point And and now, inflation's coming down. The markets are Beginning ORG to think that this is In an introduction to the next chapter That the next peel of the onion. He's exact.
Markets are To think that this is Introduction to the next chapter That the next peel of the onion. Exactly right. So, the money is the first ORDINAL thing, right? But what that and money is the first thing but it needs to get to the second ORDINAL thing and the third ORDINAL thing to have the permanent effects right which means Have to be in a tightening cycle for long enough for that to happen right and we've been in the tightening cycle for how many weeks DATE ? Right? If you look at 18 months DATE exactly. You have to be in a long enough, right? And so, you know, as we look forward We think that there's there's gonna be it's too early to tell really how this plays out in terms of whether it's wheat growth or high inflation or which one but Probably gonna get some combination of wheat growth, high inflation, and rising interest rates. Right And all three CARDINAL of those are are rough on asset prices Mix PERSON is gonna be determined mostly by how aggressively the fed ORG And other central banks tighten and and stay tight if they have to pay the price of a downturn. Gonna turn next. So, what is really for investors? So, it's too soon to tell. What do we do in the meantime? Well, where do you feel those answers? Bob Prince PERSON and Ed Kimon PERSON will be back with us for more Wall St Week after the break. Companies now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be compre To the software that is reading it because that software or robot is gonna decide whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination. Really FTC ORG I think for most the FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? New construction contracts faltered and while unemployment actually went down Significant was back to back monthly DATE declines and paying jobs. The bottom line seem to be that the economy was beginning to move forward but with many are lagging part And overall at a pace that would embarrass a tortoise. That was Lewis Rockeys around Wall St wave back in August of 1991 DATE when the United States GPE had just come off a roughly mild and short recession the number one CARDINAL song if your murder was Brian Adams PERSON everything I do I do it for you and the top movie was terminated too judgment day still with her Bob Prince of Bridgewater and Ed Hyman have ever courage so it's Bit of a different world today DATE , Bob PERSON . For example, on the job situation, we still have a pretty robust jobs economy but for everything we discussed before about the uncertainty of where we are in the tightening cycle, what comes next?
Hey, Bob PERSON . For example, on the job situation, we still have a pretty robust jobs economy but for everything we discussed before about the uncertainty of where we are on the tightening cycle, what comes next? What is that say to an investor? Well, right. Now, we're in that in between stage right now, right? So, you, if you, if you go back just to not too many months It became evident that we had a self sustained inflation that there was gonna be a tight near monetary policy the markets price that in yields went up You got to take me in a policy it's still happening Marcus PRODUCT got a little bit excited about the dip and some of the inflation they start to bite on that yield But we've already given up half CARDINAL of the yield rise that occurred and that actually means the fed ORG needs to do more than if the yields had stayed up where they were, right? Including equity. So So we're still in this thing we're still in this tightening cycle And like I said they're they're really there's gonna be a mixture of three CARDINAL things and you don't know what the mix is yet cuz it's too early to tell but you're gonna get some mixture of wheat growth high inflation and rising interest rates. The more the interest rates rise the more it's the wheat growth The less the interest rate rise the more it's the high inflation If they're fed ORG takes the foot off the break you're gonna that that inflation improvement's gonna go away and you're gonna you know they're gonna favor growth so you don't know which which how they're gonna play it quite yet So, what we try to do in this kind of environment is is maintain some balance, right? Diversification, obviously, don't not too heavily committed to anyone direction but also even within the equity market You know structure and equity portfolios that have a Very aggressive that there's a strong enough balance sheet to hold that up to to sustain their They're they're positioning the markets or a sustain a positive cash flow and I think that their companies that are you have a lot of debt in relation to enterprise value or vulnerable profit margins that sort of thing. You know, are they are the type that are most vulnerable for that environment? So, it sounds like an awful lot hinges on the fed ORG . Surprise, surprise. Jackson Hole GPE coming up next week DATE , okay? A lot of people are paying attention to Jay Powell PERSON . We used to say, if we were last year DATE at this, he was talking about transitory still. That doesn't work so well this year DATE , right? So, how much Can the fed give us what exactly where they're heading and some of the questions that Bob PERSON just talked about. Well, it's hard to hard to know. I do think we're gonna get a financial crisis somewhere. Pretty soon. Always been part of the of the tightening cycle But like you point out David, yo, last year DATE , it was really about transitory. He had five You went through five CARDINAL different things that were proved transitory I I personally think the fit is now on the other side of the wrong foot. Go to five% And I'm not quite sure what's happened but your money growth did slow dramatically Combined prices here and come down Dramatically I'm saying pricing power coming down and so I think we've made a lot more progress on inflation than I expected and and that's why the market was going up until today DATE but that's that's if inflation keeps coming down then the market is gonna appreciate that. One CARDINAL thing I don't understand Bob PERSON we heard why Ed PERSON thinks the fed ORG stop maybe he's got a bit easier actually with some of the things that have happened but financial conditions Have not tightened. Actually, if anything, get that in someone looser. That makes the fed ORG job harder does it now? Yes. The first half of the year literally the first quarter DATE that the markets were doing the Fed ORG 's job entirely. Yeah. In the fed ORG joined in It wants to fed joined in and the market saw some you know positive signs of inflation you know they actually pull back and so bonyards came back down equity yields you know came back down And so You know that as you said about half CARDINAL of the tightening that the markets were applying has been retracted If yields had stayed where they were It would be that much less that the Fed ORG needs to do
Were applying has been retracted If yields had stayed where they were It would be that much less that the Fed ORG needs to do but the fact that the yields have actually dropped some and can kinda give it back some of the work that they were doing. It's that much more that the Fed ORG needs to do. And so I think you know it's Ed PERSON referred to last that you know you you raised it and then you know we talked Last year DATE of Jackson Holston PERSON but They were clearly wrong about transitory inflation if if you actually look at the indicators that they follow and they tend to be lagging indicators I haven't heard yet an explanation about how they think inflation, why they think there is an inflation, why they think that that was wrong, and I think that that causes some cause you to question How well this this process is gonna be manage it's gonna be very tricky You know from my vanish As you can see Fiscal stimulus quantitative easing led to a 30% PERCENT increase in the money supply and that did it If you look back at that Jackson Hole FAC they completely missed that now money growth is plunging and can my prices are coming down all sorts of signs that an early signs and so the job's not over by any means. But there's progress and if you look back like pickate the 70s when inflation peaked The stock market started to respond to that. When you had a very high inflation period like we have now. Do you agree with Ed PERSON that in all likely we'll have some sort of financial crisis? So that's what happening happens in serious tight Odds are pretty good, yeah. Yeah, I mean, we haven't had enough tightening yet to really have that. Odds are good. Yeah. I mean, we haven't had the downturn yet. If there's gonna be a downturn, it hasn't happened yet. It's gonna be hard to bring inflation down. Are you gonna bring nominal spending down from 10% PERCENT to five% Without a significant An incredible you need to slow credit growth by about half CARDINAL money growth is slowed but you need to slow credit growth in half CARDINAL but it's still rising you're gonna have to you're gonna have to hold interest rates up enough and that's when thing that's when bad things happen I have to tell you this is not Things. A real treat to have the two CARDINAL of you here in Wall St. Really? Thank you so much. That is Ed Himan PERSON . I've ever caught and Bob Prince PERSON of Bridgewater. Coming up, we'll take a look at what's coming up next week DATE on global Wall St. That's next on Wall St, on Bloomberg PERSON . Access the financial world on demand. Hear from leading economists Policy makers And industry experts be alive and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars Crypto PERSON Have a world of young people That want their own financial system. And their own culture. And it is very powerful. And I'm a big believer in it. Let's take a look at what's coming up next week DATE on Global Wall St WORK_OF_ART starting with Julia Sally PERSON in Singapore GPE .
This is all straight away. I'm David Weston PERSON . Let's take a look Coming up next week DATE on Global Wall St WORK_OF_ART starting with Julia Sally PERSON in Singapore GPE . Thanks David after unexpected cuts to the medium term lending facility in China GPE we'll be looking to see if the banks follow suit with a cut in the loan prime rate also on the Slater PERSON interest rate decisions from central banks in South Korea GPE and Indonesia GPE inflation figures from Singapore GPE and Hong Kong GPE trade data Earnings across the region include Qantas GPE , Patro GPE , China GPE , and food delivery giant meat one, Bloomberg PERSON , Intelligence ORG forecast, Chinese NORP companies, maybe set to report their worst earnings 2 years DATE . In Europe LOC for the coming week DATE will be the energy crisis in Europe LOC and we have a lot of developments in the week DATE prior you had the Ryan PERSON dropping to levels that made it untenable to have shipments across it you had record high energy prices in France GPE and Germany GPE you also had Matt Gaps PERSON prices reaching you records as well so We head into this week DATE . The question is going to be how this impact industry? How would impact individuals? Will there be more demand rationing and demand destruction? We've already seen some of it with different industry having to shut down power plants but how much worse can it get and what will be the impact on the economy? Big weekend economics we have the Jackson Holston Posium ORG coming up and I think our Bloomberg GPE economics team really focused to hear some hawkish comments from chairman Jay Powell PERSON reassuring the markets there was no and that we are still to go in September DATE for 50 or CARDINAL 75 CARDINAL basis points away from economics How do they sort of continue to grow in the face of further reopening trade maybe less demand for that product finally peloton we've heard a lot from this company about assemb Some of the bikes at home, a lot of cost cutting initiatives, all the help sort of get that company back on track. That too will be a key focus for us next week DATE . Thanks to Juliet Sally PERSON , Danny Burger PERSON , and Taylor Riggs PERSON . Well some of those who maybe caught are those so called zombie companies who've loaded up on debt when it was cheap. International finance. That's next on Wall St Week on Bloomberg PERSON . Tag on the product may read made in the USA GPE but the Often PERSON says made in India GPE . Alphabet sun darp PERSON patchai Microsoft ORG such a Nadella IBM's ORG Arvin Krishna PERSON my crime technology Sanjay Mayhotra PERSON and that's And that doesn't count Indians NORP running companies all over the world. So many Indians NORP risen to the top. So points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the
Really competitive education system. If you Technology it gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make Visas GPE for the US GPE . It was nice while it lasted all that support from the fed ORG from oh interest rates. Range for the feral funds rate to pumping money into the economy Enabled in large part by the financial backing from the congress ORG and the treasury we will continue to use these powers forcefully proactively and aggressively until we're confident that we are solely on the road to recovery. All of which allowed companies to borrow as much as they wanted Was worrying to Russ Costrick PERSON of Black Rock LOC as much as 4 years ago DATE . The 800 CARDINAL lb gorilla which eventually we're all gonna have to question is whether or not this build up in corporate leverage which we've seen over the past 3 or 4 years DATE is that sustainable But now those happy days DATE are over as the Fed ORG has reverse course and says it will keep raising rates until the inflation dragon is slain. The idea that we are going to start cutting rates. Early next year DATE , when inflation is very likely going to be well, well, well, inaccessive our target. I just think it's not realistic. Leave all those companies who've borrowed so much. Well, at least some of them are so called zombies. No not those zombies companies that don't generate enough cash to pay their debt and that leads economists like neuro Robini PERSON to say we're going to see some of them fail which may just be what we need to get to the other side. You're tons of firms that were highly Zombie Now that we have to tighten Inflation is higher that zombies are gonna collapse. And to take us to the strange and exotic world of zombie companies welcome to Sonia Gibbs PERSON she's managing director and headed sustainable finance at the Institute of International Finance so Sonia ORG thank you so much for joining us on Wall St Week let me start with those basic questions what exactly is the zombie company and how many Are there out there First ORDINAL of all, to take a step back. What you need to think about is that over the past 10 or 15 years DATE , global debt levels have skyrocketed. We've had very low interest rates and for example, non-financial corporate debt around the world is now close to 100% PERCENT of GDP. And that's more than double what it Decade ago DATE so that's a very worrying backdrop And so what we mean by zombie companies is a company that essentially has to borrow to keep going. They're highly leveraged. They're not growing very fast. They're revenues are not up to par. And at the moment they face a very difficult situation you've got higher input costs so your commodity prices are higher wages are rising at the same time you don't earn enough revenue to cover all of these higher costs and your debt service so if you have a ratio of re To interest costs that's one CARDINAL or less if you can barely cover your debt service cost we call you a zombie company and it's a very good name it's very evocative And for how many amuse difficult to calculate right because for a lot of firms that for example art publicly listed the information might be less available they might be smaller non-public companies but the federal reserve has to mates that between five and 10% CARDINAL of US GPE for
Photo reserve estimates that between five and CARDINAL 10% PERCENT of US GPE firms fall into this category It's also important to remember that this is not a static world. It's not once a zombie, always a zombie. Conditions change and in fact, becoming a zombie company is a little bit cyclical. In the sense that when times are good, maybe interest rates are low, growth is high, maybe you're not a zombie. But then, you know, bad things happen. Pandemics happen. Shocks happen. Interest rates go up And a company that was formerly doing reasonably well Might suddenly fall into the zombie category. So so you mentioned the overall debt load it's true certain United States GPE and not just in United States GPE in part because interest rates are so low there's some very very successful healthy companies that loaded up on debt cuz it was so cheap but and whenever we've talked about this risk in the last few years DATE I said don't worry as long as interest rates are low we're fine it looks like those days maybe on their way Higher interest rates. So, what kind of pressure is that put on these zombie companies? Well, I think it's AA good analogy, right? It's all fine until it's not. And so you've had a kind of a confluence of factors that have hit. Pretty much at the same time, you had a pandemic which hit growth. You had commodity price shock, you have writing inflation, you have Interest rates and you also have firms who's who's business models for example have been entirely changed by the pandemic. I mean, amongst the list of zombie companies you might find a company like we work. You know, a company that has been very successful but at the same time, the pandemic has changed a lot of things for that for that company. Cruise lines is another good example of a type of company who's now in the zombie category or some of the meme stocks. You know, AMC ORG , your game stop. So, these are really household names Think that the difficulty is at a point in time when you've got wages rising when you have higher input costs these firms may not be able to borrow as much as they need to borrow to keep afloat Tend to find zombie companies concentrate in certain sectors or in certain size corporations So I think it's fair to say that the the sectors that are worse off in terms of percentage of zombie firms are probably in manufacturing and in retail and retail of courses industry that's undergoing secular change over the long term as we move to sort of more online no less brick and mortar think there are there are underlying structural issues there and in Sector in any case but I think some of the companies that are hardest hit tend to be smaller firms and if you think about a small company, there's sort of inherently face greater credit risks than some of the larger, better established companies that have long standing histories and track records in borrowing. They're, you know Familiar to investors smaller companies have a harder time accessing funds especially when when borrowing conditions are difficult and with some of these companies having fallen on hard times during the pandemic You know, there are estimates that suggested in some cases as much as 25, 30% PERCENT of the small cap companies, especially if you include unlisted companies, could be falling into this sort of zombie trap. I wonder saying about the larger effects on the economy. Obviously, we don't wish ill for any corporation but there's gonna be a lot of stress put on a lot of the companies you're describing right now. And so far is that all gets sorted out to use a eufacism perhaps. Is there some benefit for the economy and redeploying the capital they represent into things that might be more productive than Enterprises. I think we might wanna think about this in a short term and a long term context. So in this short term It is very helpful for the economy to keep these companies afloat and you could think of the example of Japan GPE here which is spent over 800 1 billion US dollars MONEY since the pandemic hit to support its companies so you avoid bankruptcy, you keep people employed, you keep these company afloat, but there's Longer term cost to be paid for that because when you think about it money that's being spent Zombie PERSON companies afloat. That could be more productively deployed elsewhere. You could put it into capital spending. You could put it into infrastructure. You could put it in a new industry, new technology, maybe in the ESG world or or green technology.
Put it into capital spending. You could put it into infrastructure. You could put it in a new industry, new technology, maybe. In the ESG world or or green technology that can really deliver a boost to productivity and growth. So it's kind of a foregone opportunity in that sense. At the time for the reason you describe and the example of Japan GPE is a good one. It strikes me. There are political consequences of letting zombie companies go belly up. You know, the the politics of these things are are always difficult, right? I mean, one of the the conclusions that you can come to is that if you have High proportion of of zombie companies if you have companies that you're worried about keeping afloat there's political pressure to keep that going The more that borrowing cost rise, the more the interest rate rise, the harder time these companies will have keeping going. So if you're in a world where inflation is rising and you have central banks having to make a very difficult balance Controlling inflation and supporting growth which can involve supporting some of these less profitable companies. You know, it's a it's a it's a rock and a hard place. You know, where do you, where do you draw the line? You if in fact the fed ORG could be held responsible for this many as I'll be company and maybe it's not what they're intent but it's certainly was a consequence of extraordinary low interest rates for a long time. Oh, I think ultimately, it has arbitraries of the price of money. You could hold the fed ORG responsible for everything really but certainly, it was an inadvertent consequence Of low interest rates. So I mean if you think of the the many many years when we had low and in some countries even negative interest rates there were warnings sounded all the time. There are risks to financial stability. There are risks to long term growth. It's going to stoke inflation. It's going to distort financial markets. Is disto Acid valuations And in fact you can think of zombie companies as a type of distorted asset valuation right because a company that cannot generate enough revenue to support its debt service and it's running costs arguably is trading at an inflated valuation because it can continue to borrow at low rates so you Sort PERSON of put it on the backs of central banks but it's it's certainly an inadvertent consequence of something that had to be done to keep growth going during the the after the financial crisis International finance. Pleasure to be here. Larry Summers PERSON of Harvard ORG . This is Wall St Week on Bloomberg PERSON When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significantly more impactful. Continuous PERSON shipping is the key component of global trade about 80 or 90% PERCENT of all the world's goods that transported sea at some point. But there's a significant unseen cost to the modern era of global commerce. About three% of all the world Output of Germany FAC . Since reducing trade isn't a likely option. What about a technological improvement? To help reduce the emissions from these well stocked maritime behemoths.
Larry Summers PERSON of Harvard ORG . Larry PERSON , thanks so much for being back with us. So, let's start with those fed minutes that everybody was waiting for eagerly and they came out Markets didn't know quite what to do with them what did you make out of those minutes They confirmed what I suspected Which was that the fed ORG doesn't know where it is That the world is very ambiguous that this point And A meeting or a very poor way to convey Collective PERSON message Look the Fed ORG has a fundamental problem About which it is not yet willing to be realistic And that is that it is exceedingly unlikely That inflation can be brought down to target levels Without a substantial increase in unemployment they To be Unemployment and And the reality is that it's probably not so realistic to think that they're gonna get inflation all the way down without getting unemployment up They don't wanna acknowledge that and that forces a certain confusion I into all of their statements I can sympathize and understand why they don't want to acknowledge that part of the problem is they've taken on an excessive obligation To communicate A very very difficult situation I don't know to what extent they're gonna choose to take the pain that is ahead on the stag side and to what extent they're gonna choose to take it on the flation That To be seen They don't really know either which way it's going to go Gotta worry them. That Than they were when the fed ORG last met. And Middle of a tightening cycle Substantially loosening Ask to make a central bank nervous David there's one CARDINAL other aspect of this situation that I think Very important and under recognized And that is because everybody focuses and focuses rightly on the geopolitics. What's happening with Russia GPE and Ukraine GPE , what's happening with droughts, all of it. They don't really fully internalize that oil prices and wheat prices have both come down substantially at our predicted Substantially in the future. Concepts of core inflation When headline inflation was higher than core inflation Can't stop doing that when headline inflation is lower Then I inflation With respect to core inflation Mean Measures And so I think we've still got a substantial inflation challenge ahead of us. One of the things that fed ORG emphasize in the minutes TIME besides really being
Substantial Inflation challenge ahead of us. One of the things that fed ORG emphasize in the minutes. Besides really being concerned about inflation expectations. On the other side of that was a softening housing market. Something you referred to last week DATE on this program. Give us your take of the housing market. Some people say, we're in a housing recession right now. I think you have to distinguish Movers NORP from stairs or to put a differently you have to You have to think about what the right way to look at rents is. Here's what's true What's true is that last year People who were signing new leases We're buying new homes We're paying 15 or 20% PERCENT more than they had a year ago DATE Nothing like that Fatty into The consumer price index or the feds preferred measures a PCA ORG Index All the fed through The small fraction of people who saw their rents change And a constant rent for everybody else. What that means is that down the road like now You're seeing inflation Although they still are going up at a reasonable rate Substantial increases and so we're gonna see significant housing price inflation in the measures of inflation that are used For another 6 to 9 months DATE that's a different thing than what builders are responding to builders aren't responding to that builders are responding to what they think the price of houses will be a year from now DATE and that Calm PERSON down and so we're seeing Slowing in And that's what happens when When interest rates go up in some ways it makes sense if we're gonna have a decline in economic activity Better to have a decline in something where we've already got a huge stock of it and it's only the new flow that's being affected Van The in something that we need to consume A continuous basis That doesn't have any duration to it But I do think we're Hordes ORG , In the future with respect to housing and I'm sure they'll be differential impacts in different parts of the country as I say my best guess is that we will have a meaningful recession sometime in the next 2 years DATE And if so, I think there's considerably more pain with respect to housing ahead. Larry PERSON , we're gonna talk about softness and slong. We certainly saw that in numbers coming out of China GPE at the beginning of this week DATE . And I wonder what you make of the Chinese NORP problems as we know there are three CARDINAL or four than their inner lock there. But on the other hand Is it possible that we'll give a little at least a little relief to the fed ORG here on slowing inflation Probably will It goes back to the issue we discussed a few minutes ago David TIME , about oil prices and grain prices Main ORG impact of Chinese NORP slowing Likely to be How much weight those should be given as we think about our inflation rate in this country but it probably is a positive On inflation How we see China GPE in the future and how China GPE will be responding to these economic difficulties. These has i've been saying now for some time are looking like increasingly profound events in China GPE It was taken as almost axiomatic Hey Facebook
Increasingly profound events That at some point the Chinese NORP economy would surpass the American NORP economy Total GDP at market exchange rates that's now Challenges PERSON for China GPE there's the huge financial overhang there's the where the growth is going to come from there's the growing communist party involvement Wider range of enterprises The demographic Some of the economic forecasts about China GPE in 2020 DATE in the same way they looked back at economic forecast For Russia GPE that were made in 1960 DATE or for Japan GPE that were made in 1990 DATE . Last one here toward the end of the week DATE turkey central bank made a move to try to combat inflation by you won't believe this cutting the interest rate from 14 to 13% PERCENT this course is part of Urban ORG theory of interest rates What did you make of that? President Erdogan PERSON is the world's first Practical ORG modern monetary theorist. He is putting modern monetary theory into effect So far it hasn't worked very well For him Or for the Turkish NORP people I don't think that's going to turn around And I hope that the misguided accolades of modern monetary theory in the United States GPE are watching. Okay Laurie thank you so very much that's Larry Summersville Harvard PERSON our very special contributor here on Wall St week. Yes Richard PERSON . That's next on Wall St Week on Bloomberg PERSON . Can Griffin is moving both sit it out and send it all security is to Miami GPE this group was broken by Bloomberg PERSON 's Amanda People PERSON ask me all the time what is the key to being a really good investor I tell them it's the surround yourself with and work with the best investors you can find on Bloomberg Wealth PERSON I'm gonna take you to meet the greatest ambassadors in the world the people that I would like to have managing my money that the start of the internet revolution I kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Neutral Step by step electrify everything and what does that mean Finally, one CARDINAL more thought. Getting old. It's one CARDINAL thing that we all have to do Of us wants to think about it. And sometimes seems like some of the oldest among us may be the deepest in denial. Where there is rock musicians like Mick Jagger PERSON still performing live on stage at the age of 79 DATE or sir Paul McCartney PERSON who's still Political leaders in or nearing their 80s DATE like President Biden PERSON and Mitch PERSON And Nancy Pelosi PERSON who snapped back at a reporter 10 years ago DATE when asked a question. Hey
President Biden PERSON and Mitch McConnell PERSON and Nancy Pelosi PERSON who snapped back at a reporter 10 years ago DATE when asked a question. Colleagues privately say that you're just getting to stay on And who can forget President Ronald Reagan PERSON who in 1984 DATE provoke the age old or should I say old age question after stum Through his previous debate with Demo Only ORG to come back with this zinger. I will not make age an issue of this campaign. I am not going to exploit for political purposes. Opponents youth and inexperience. The world of business and finance is an entirely immune from this but by Warren Buffett PERSON who at 91 CARDINAL shows no signs of stepping down and told our own David Rubenstein PERSON his goal is to keep Quite like to be the oldest man that ever lived actually And who knows maybe we don't really just get older. We get better. For those who is hoping that that may just be true. We now have a concrete, provable example, coming from the world of golf, where a journey and tour professional who struggles for years DATE , suddenly became Simply by turning 50 CARDINAL pushing him Older player PGA tour champions league From New Zealand GPE happened to be at the very top of his game when his birthday came around but according to the Wall St Journal ORG adding that extra year has let Make in 1 year DATE $ three MONEY . 5 million CARDINAL which is more than he made in all the rest of his career put together and if he keeps sinking extra long putts like he To win the Boeing Classic ORG . That does it for this episode of Wall St Week. I'm David Weston PERSON . This is Bloomberg PERSON . See you next week DATE . Hey Important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure for something Universally important to human life as sleep mysteries surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our It's easy to memorize things that makes you smart if you can spit it back a lot of facts but if you wanna be wise if you really want wisdom you gotta know when and how and why to use that information And that's what your brain figures out while you're sleeping. BSO now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performance
BSO now is your online home for weekly DATE Boston Symphony Orchestra ORG and Boston Pops ORG performances see new concerts that go behind the scenes plus acclaimed our carnival concerts visit PSO ORG . Org slash now with a music plays on BSO season sponsor Bank of America ORG Hey flashing is a terrible thing inflation you could tower. Can you think about bitcoin I don't think it's a currency I think it's a commodity today DATE we're in an everything vault I'm Eric Schatzker PERSON and welcome to Bloomberg's Front Row ORG . Today DATE , I'm talking to Jean Hines PERSON , the CEO of Wellington Management ORG . Boston GPE based Wellington GPE is one CARDINAL of the world's largest asset managers with almost $one MONEY . 30 billion CARDINAL of investments. But because it's a private partnership the firm has been shrouded in mystery. Jean PERSON is changing that. She's also making ESG investing one of Wellington GPE 's top priorities. Sustainability will transform the structure of financial markets. We don't think it's wolf. We think it's part of like a very, very important part of studying the In the risks that of of 5000 CARDINAL companies. Is that to say there's alpha and ESG or alpha and sustainability? Yeah, absolutely. You believe that? I believe that. Jean PERSON and I explore the strategies and perspectives that make Wellington GPE different and are defining her tenures CEO. Why she's still believes in globalization and having a presence in China GPE The virtues and challenges of active management. What to expect from Wellington GPE 's expansion into alternatives? The value of staying private. Here's my conversation with Jean Hines PERSON . Jean Wellington PERSON . One CARDINAL of the world's largest investment firms. But To Black Rock GPE , Sidelity Vanguard I could name others of course It's hardly known And certainly not well understood. Why? For a long history, we have had a very low public profile. So, that that would be number one. I would say another reason is that we are a sub advisor. So, our largest business one of our largest businesses to be a sub advis Other companies that are well known household names such as Vanguard ORG and Fidelity ORG and T Row price for example. So, we would we don't we don't market directly to consumers. We are the content provider. So you combine those two CARDINAL that we're not, we're not actually, we're not a household name, brand name, but in also at the same time, we had a very low public File. Probably the reason most people don't know us. Is Public profile flying under the radar if you like being a little mysterious good for business a competitive advantage. It probably served us well overtime. I think for our current if you look in 2022 DATE why am I talking to you today DATE ? I think the main reason is because we're a subvisor and we rely on partners. We're finding that it is important that that our brand is known for our content. I think Very importantly and maybe even more importantly I also think it helps with talents So, it's very interesting that you know, for years DATE and years DATE and years, we would be, we would try to have track talent and known would ever know anything about And that served us that was fine when we were a Boston GPE based company but when we began to globalize and and begin to hire investors all over the world that didn't serve us well. That's been a big change, hasn't it in the asset management industry, the importance Having a brand. Most of the asset management industry has made a bet. Yeah. On sustainability. Yeah. But suddenly ESG is is under attack Right there are state governments. Here in the US GPE that are waging war on sustainable finance. They they they're calling it wokeism. What do you think of that? We're not investing on the same ability from a value based perspective. We're investing in our capabilities from a how do we research companies? How are these companies earnings gonna how what are the risks to the From ESG factors. What are the opportunities for companies from an ESG factor? So, we don't think it's woke. We think it's part of like a very, very important part of studying the Sat ORG in the risk set of.
ESG factor. So, we don't think it's woke. We think it's part of like a very, very important part of studying the In the risks set of of 5000 CARDINAL companies. Is that to say there's alpha in ESG or alpha and sustainability? Yeah, absolutely. You believe that? I believe that. The alpha will all be in the nuance of company research. You know, what, you know, which company is in Life science tools industry for example are going to create products to help Biologic PERSON manufacturing. Be less admitting. You're only going to be able to figure that out by meeting with 20 1000 CARDINAL companies like we do every year. So the the antithesis if you will of like building a momentum model and back testing it. Of what the factors were in the last decade DATE . Almost every CEO. In almost every industry. Grew up believing that globalization was good And globalizing has been a priority. Yeah. Of Wellington GPE 's for Yeah. Is that still the case? Yes I would I would suspect that as at the end of my tenure at Wellington GPE instead of having 30% PERCENT of our employees in Europe LOC and Asia LOC it could be closer to 40% PERCENT of our employees so we are And intentionally Continuing GPE it to invest it in our offices around the globe but you're right the deglobalization is we're in a period of regime change and deglobilization I don't think that necessarily impacts our business into the extent that there is great investment talent all over the globe. Really great investment talent. We're we're we don't have Monopoly PERSON of investment talent in Boston GPE and that clearly wasn't the case. You know, the reason we began to globalize our investment platform is is that the world was expanding the number of companies that were in Europe LOC and Asian NORP . Who are we to say that we're gonna follow all those from our Boston GPE office That was the reason we began to expand and I think that is still true that we are is the global firm. This is a global economy and even if if there are certain trends that are deglobalizing. There is still a world there for us to either think about from a company Perspective or think about from a from an economic from an economic perspective. China GPE has become And is still becoming an increasingly complex place in which to do business. How do you manage that? So, we have a presence in our Hong Kong GPE office and we have a small presence in our China GPE and in China GPE Rashang High office. We are expanding our license to be able to invest in in the onshore China GPE . Right now, it's small. Bowls an important place for us to do research are you already starting to do anything differently because clients are Concerned about inflation because of the impact on their portfolios of rising rates because of the potential for a recession Long lived that maybe. Oh, I think our clients have not made major changes. There's definitely more interest in our our commodities capabilities, our inflation capabilities, our value, investing capabilities, which have been out of favor, and unfortunately, for, for us, we continue doing Those teams. Have had in the past. Satellites have proposal systems they can kinda move to get out of the way of each other or change their orbit a little bit it's a service that you guys offered to help these companies know how to maneuver them machines Yeah, we offer a collision avoidance survey. It's a subscription service. We'll send you an alert up to 7 days DATE in advance. If you're satellite's gonna come dangerously close to a piece of debris or another satellite. Companies will be doing that for decades DATE moving. Satellites around but it's it's sort of like a harder problem now. The risk of a collision is a lot higher now just because we've installed so much more hardware in the space. Are you have a big collision it creates a cloudy debris and now all the other satellites are flying through this wizing mess of debris as we add all of the new satellites into space the risks of the collision the likelihood of the collisions going up
Collisions going up. David Weston PERSON . We think that's the next secular shift. Yes it's about renewables. This is a level of uncertainty that we haven't had to deal with. Television and radio Wellington GPE is an active manager. Texting? No. How come that's not our core skills that going back to what is our core skills that our core skill set is being a research based And having these teams of of portfolio managers with different skill sets that practice their philosophy and process There were research based content company generating insights about the world. Let's completely opposite of passive investing. Am I correct in saying that the implicit promise to investors in actively managed products? Is that they'll either get alpha? I'd beat the market. Yeah. Or better risk adjustive returns. Yeah I I think for us that it would I think Clients are asking for both of us, right? Hey portal call Alpha Alpha LOC and risk adjustive returns and that's post a full financial crisis risk the pathway returns has become more important but you go back to the basics if you can generate 100 CARDINAL basis points of alpha a 200 CARDINAL basis points of alpha Indesease that is a tremendous compounding effects. The reality, however, is that across the asset management industry, the active. Yeah. Investment management industry. Is oh or sometimes negative after fees and the returns aren't any better on a risk adjusted basis. So, if that remains the case, what is the future for active management? We need to earn a return. We need to earn it. We need to earn that alpha. So, that's that's what we're trying to do. We're trying to we've created an environment where we have this and I I do mean this. We Incredible investment ecosystem. We have an in this 600 CARDINAL person investment ecosystem that that collaborates that shares ideas that we're different perspectives different opinions on the same subject are welcome and thrive if we can continue to do that and that's that that's the input like can we do that then hopefully our output over We'll generate those returns. Private assets and alternatives are still a small piece. Yeah. Of Wellington GPE 's $ one MONEY . 20 billion in In a UM ORG . How do you grow those parts of the business? Yeah. When the competitors are large? Established and in many cases excellent at what they do. To the private business in 2014 DATE and so our first ORDINAL fund, our first ORDINAL , first group of fund is now on. It's fourth ORDINAL fund. So, we. Yeah so we have four CARDINAL by the end of this year DATE we're gonna have four CARDINAL platforms growth equity Biotech climate technology and investing in diverse founders. So, where else can we go? So, that's the question like, where else are we? What are our ambition? Yeah, where else does it where else can we go? We have a very Public footprint credit. So, there are areas that we should play on the private side and credit. To be successful, we don't have to be, it's not about being number one CARDINAL or number two CARDINAL . It's about growing that part of the business and generating great results for clients that help, that help the overall business. The same is true on on real estate. So, we have a very strong structured debt Capabilities as well as real estate equity capabilities. So, can we attract talent to help us all the compliment those on the public side? You know, longer term, we we have we have a we have One hybrid fund. You know, you could envision us having hybrid funds by sector that could that like that's like a natural extensions. We have such strong sector teams. So, those assets are what right now. All together by the end of the year DATE they should be seven CARDINAL or eight 1 billion CARDINAL so a small part
Strong sector teams. Are what right now Altogether. Of the business. It's privates and alternatives. Privates and alternatives are seven to eight CARDINAL . The liquid alternatives. We've been in that we've been in the long short business since 1994 DATE and that that business is approximately 30 1 billion MONEY . Okay. So put them together in your getting close to 40 CARDINAL . Any people In your position who started out As administrative assistants. Yeah. And Rose PERSON to become CEO at the same company. Really, the only place you've ever worked. Tell me your story. So, go back to college. So, first ORDINAL of all, I my parents were Irish NORP immigrants. My mother raised six CARDINAL kids and my father was a brick layer. So, I didn't know anything about the stock I would say they were very focused on education and so I Practically a full scholarship to Welsie College ORG . Which was an amazing experience. In in as one of those one of the classes I took which was in my junior year it was sociology. It was a soci That you had to get a job. I recall it has a class you have to take. This was the class you had to take. But I just happened to get a job at a brokerage firm in Boston GPE . And so that was my first ORDINAL introduction to the stock market and I did not like the cold calling part of the business but I was just fascinated by the stock market and that's how I found my way to Wellington GPE and Wellington GPE was just beginning to expand they were higher higher in college graduates as administrative So that story. Start to manage money. Yup. And at what point did you realize that this firm was interested in cultivating you as a leader? So, I started managing money in 1997 DATE and so and every year from then, I began to manage more money in 1999 DATE . I I was able to run a Tech ORG portfolio 2000 DATE . Health care fund. And then the decade of DATE the 2000 DATE 's was really like honing those research. Those portfolio management skills. Hey Again, my leadership journey right around the time I moved to London GPE . So, I moved my family to London GPE in 2007 DATE and 2008 as we began to globalize our investment platform. It was really about culture. It was also becoming more independent from my cocoon here in Boston GPE . I'm from a very large Family PRODUCT . A big Irish NORP family. I had I had my my my life was planned out. I had social events all the time. Barbecue ORG 's here. So I actually do think moving to London GPE . Being alone with my small family unit. Away from the person I worked with for 16, 17 years DATE , was the beginning of my leadership journey. And then I became managing partner in 2014 DATE . You're still running the world's largest health care fund. Yes. How's that possible? Managing 46 1 million dollars MONEY With all the research and all the analysis that it takes to stand top of such a complex industry set of industries really. What also being the CEO? Yup. And while also being I hasten to add a mom to four CARDINAL daughters. How do you do that? So, everyone has super strengths, right? Everyone, everyone, everyone has super strengths. One CARDINAL of my super strengths is your superpower. Superpower is organization. Superpower and processes. I think it would be it would probably be impossible. Companies now they're getting hundreds CARDINAL maybe even thousands CARDINAL of applications so softwares come in to automate the process you wanna write your resume for robots not for humans the only job your resume has is to be comprehensible to the software that is reading it because that software or robot is gonna decide Whether or not a human ever gets their eyes on it. Concerns about how this technology could exacerbate discrimination.
Segment of the population that might not be totally inclusive or not be Concerns about how this technology could exacerbate discrimination. The FTC ORG needs to be making sure that we're fully understanding this technology. We don't trust companies to self regulate when it comes to pollution. We don't trust them to self regulate what it comes to workplace comp. Why on earth would we trust them to self regulate AI ORG ? We've talked About The virtues of being a private partnership Have you ever wondered to yourself of Wellington GPE would be better off Public company? No. Why not? I've I follow public companies my whole career and from a lot of public companies you have to really focus On And it's more short-term focus than it was 15 or 20 years ago DATE and the best companies continue to operate with a long-term focus. Our private partnership just allows us to be long-term focused. The other question you would ask, what would ever make us go public? It would probably be some dramatic In the industry where we need a capital in a way we don't need today DATE . This Makes a lot of money, doesn't it? Alpha for our clients. It is a profitable business I was Fishing for something a little bit different which is along the lines of this. There aren't many. Public betrayed companies. Yeah. With Acids under management in the neighborhood of Wellingtons ORG . Only handful. But they make You know those with a one CARDINAL handle on the trillions CARDINAL Make somewhere between one and three 1 billion dollars MONEY a year. In net income Is that ballpark for Wellington GPE too? Get me there. It's a nice try. Say is that we are we participate in the asset management industry We have a You know a similar We don't have the we don't we are we are an investment management business so we order fee for managing the money we're not we're not heavily distribution oriented business. All of our compensation though is geared towards performance. So everyone at Wellington GPE will do better if we For clients and that's the key. How do you decide who gets paid what? Other part of our partnership the three CARDINAL managing partners which I've been one since 2014 DATE this tribute or determine the profit how the profits are split at the firm so you have to imagine it has to be tremendous trust in the three CARDINAL mansion partners and that trust means I know they're they trust us to know what's going on Business. Who's having impact that we're not gonna play favorites? That we're gonna be really fair. The path to partners have been the ability to become a partner at Wellington GPE . A really critical part of our Talent has always been One CARDINAL of the hardest. Maybe the hardest problem to solve for any investment business. And that was true before the pandemic, right? And the demands that it has created for flexibility and the demands that it has created for diversity. How hard is the talent problem now i think the pandemic has shown us and it probably should show most companies that it's not about buildings it's about the culture it's about shared values In the future we're gonna be more flexible about where our talent sits how much of Wellington GPE
On the jeans, hinds era. Yeah. The CEO. They'll say you accomplished what? That we continue to hire amazing talents We have made our collaborative investment ecosystem Stronger and that we we have it been a firm that's growing so we've been able to expand the partnership and that we are delivering most importantly we're delivering Read outcomes to clients and maybe finally it's like to like it's more about like I do the previous CEOs of Don and figure out ways to strengthen Wellington GPE so that it's That it we have another 40 50 years DATE that that the next set of CEOs can continue that this is a now this is a I'm just passing through in a steward of this firm that you know my almost 40 years DATE here whatever whatever I retire that that I will know with you know know that this will this Will be very strong for the next 50 years DATE . Thank you very much. Thank you Eric PERSON . I really really enjoy our time. Tag on the product may read made in the USA GPE but the sign on the CEO's door often says made in India GPE . Alphabet sun PERSON darker And that's just a start. Added the cheap executives of Adobe ORG Deloitte Gap VMware and that doesn't count Indians NORP running companies all over the world Why have so many Indians NORP risen to the top? Coastal ORG points to India GPE 's incredibly competitive education system. If you can survive the pressure it takes to get into one of the Indian Institutes of Technology ORG it gives you confidence to handle American NORP universities and later at the business world. Meanwhile the belief in India GPE 's ability to produce so many tech wizards is reinforced every year Indians NORP make up Three fourths QUANTITY of the immigrants receiving coveted H one CARDINAL B visas for the US GPE and it's a Talked early enough all these precious materials you were just mentioning and we won the lucky side that our prognosis was spot on in a way forecasting what kind of material we would need and what quantity we would need. So Life you're the CEO of Roblox but on Roblox you're builder man. Maybe. Know that name we just started up Is maybe 2 weeks DATE after we launched and we're all picking our own used
You know that name we just started up Is maybe 2 weeks DATE after we launched and we're all picking our own usernames Everyone picked the one I just said. No, they're mad. So, you've had the same avatar since 2004 DATE . That's right. That's awesome. Do you still play? I wish I could play the whole day I have to be a CEO So how often do you play? I'm probably on everyday but not as much as I would like. I have four CARDINAL kids. On Roblox a lot. He said, his favorite games are the Tycoon games. Lumber tycoon theme park tycoon. I love those. I love all of those. I have a bit of a theory. I have four CARDINAL kids. Oh, you do? Yeah, they're now in they've grown up watching me do this. Yeah. Another, they're pretty savvy, social media people, but I'm optimistic someday. They're gonna be Roblox for some other reason like communicating or more working or something like that and then they're gonna be oh gosh it's like forest to be on robots. It's a Port Monto of robots and blocks where users can build and play games in a threeD world Global online gaming jogger knot that kids are obsessed with to the tune of 10 1 billion plus hours MONEY a quarter. In fact roadblocks was building the metaphors long before Mark Zuckerberg PERSON claimed a new name for Facebook. But what does the future metaverse really look like and how do we cultivate a civil digital society within it that keeps kids safe? Joining me now on this edition of Bloombrook Studio ORG 100 CARDINAL . Roadblocks CEO and co founder David Buzuki PERSON David's so great to have you here. I really appreciate it. It's wonderful to be with you. Well, I'm a parent. I'm a mom and so I'm been really excited to have this conversation. For parents and anyone out there who still doesn't quite What exactly are kids doing on Rob Yeah PERSON kids on Roblox aren't just playing they're learning they're hanging out together Can't be together in real life. They're hanging out on roadblocks. They Playing hide and go seek they could be pretending they're running a store or a pizza parlor they could be making the next big game or adventure so it's really a wide range of things and it involves doing things together pretending you're together Right now it's mostly Games or experiences four CARDINAL kids buy kids how old are these players how old are these developers we have young players who are getting interested in coding who are getting interested in designing things but more and more the community on Roblox is blossom into this super rich eco Them thousands CARDINAL of developers making a living on the platform some of these developers are making tens or 20s DATE or 50 millions of dollars MONEY a year so how many of these developers are really kids and how many of these developers Now, grown ups. Yeah, well, think two 1 million QUANTITY plus developers. A lot of them are grown ups and more and more. In addition to the natural organic people that started on Roblox PERSON , we're starting up studios come in on the platform as well. Professional game developers who are developing on other platforms starting to take a look at it. So, our Whopper demo A little bit older although we've had kids as young as 13. Is there something about preserving the ability for young kids to be able to make games for other kids? I mean, cuz obviously, if you have, you know, fancy studios, muscl Does that change the dynamic of the platform? I I think it does. One CARDINAL of my favorite experiences is natural disasters. It's been on the platform forever by one CARDINAL of our early developers. It's not the kind of thing that I I think a normal studio Think of but when developed by young creator you know we're gonna be we're gonna be hanging out together and there's gonna be a hurricane and we gotta like run away from it or there's gonna be a lightning storm like that kind of stuff we see a lot of that creative game play coming from the younger What were you into as a kid were you a gamer? I was kind of a nerd when I was a kid. I was studied really hard. I luckily grew up in Eden Prairie LOC , Minnesota GPE at the time it was out of
I was kind of a nerd when I was a kid. I was studied really hard. I luckily grew up in Eden Prairie LOC , Minnesota GPE at the time it was out in the boonies from Minneapolis GPE , Minnesota GPE . There were sandpits and We did a lot of model rockets and we built go karts and we you know it's kind of one of these idyllic childhoods. The one CARDINAL key thing that happened to me very early on is we had a computer lab in the school and then my parents bought me an apple too at the time. And that kinda got me interested I also heard you were the captain of your high school TV quiz team Think of think of Minnesota GPE in the 1970 DATE 's and 80s DATE where every weekend two different schools compete four CARDINAL students from each school you know and a really funny four CARDINAL by four CARDINAL configuration on a quiz bowl thing and so Eden Prairie PERSON had a pretty good quiz bowl team. You eventually made it to Silicon Valley LOC . Yeah. Went to Stanford ORG . You started a company called Knowledge Revolution in the 80s EVENT where users could create and test physics experiments. That's right. The science kid and you coming to life. Yeah, you know, went to school, had a couple hard years DATE with jobs that weren't really that exciting, took a few months DATE off, and I got really excited about there's this whole blossoming educational software, marketplace, the McIntosh ORG had just been introduced, and it was just really interesting, exciting. I did a survey of all of that and a lot of the educational software was So when we looked at physics, it was a whole different idea. Could we make a wide open laboratory? We could build anything, any physics, experiment, bring it to life, measure it, see what it feels like. You sold that company, made some money, you became an investor, and you invested in Oh, yeah. Wow. I I had a friends to account. I'm dating myself a little bit. But I had a friends to account. I'm curious what you learn from the early days DATE of social media. Yes, so one thing I learned is it was really fun to invest but it's not my sweet spot. Like my sweet spot is trying to build and create things. I remembered, I think Account number 79 CARDINAL on friends. They're and just seeing that wonderful thing of finding other people, friend of friend, playing around with that early user interface. It's a little bit almost thinking of interactive physics where we were simulating the world and Friends WORK_OF_ART , they're seeing how important social is. Those are a couple of the components that have come together in roadblocks. So, when you start a roblox in 2004 DATE , what was the idea back then? The feeling of this Category Started feeling almost inexerable. It's a category that people have been talking about and sci ORG fi for many many years DATE . We've seen futurist talk about it. We've seen a lot of movies. We were thinking yes, immersive 3d co experience. Kids flocked to Roblox during a pandemic. You went public in the middle of the pandemic 2020 45 1 billion dollars MONEY market cap we spoke on that day even you have said that kind of growth won't keep up what kind of growth can we expect from Roblox in normal times we believe A part of all of our lives. It's gonna be the way we communicate. How people get to go to school when they can't get into school. How people. So they're gonna go to school in Roblox PERSON . If I happen to be taking my science class and I can't get into the classroom and we're Thing of frog. We'll probably dissect the frog in something like Roblox PERSON and a simulation which I think is gonna be very very powerful and for our company where there's a lot of people that are gonna end up working all around the world. Some of us will be For some won't having a common threeD place where we can have those water cooler conversations where everyone has a desk but we get that serendipitous thing where we both happen to go over and chat. I think also is gonna Very big. Your goal is to build an entirely new category of human Experience. How do you moderate that on such a massive scale? Do you see that coming We will not just come
In the coming months DATE do you see that coming The moment news breaks 24 hours TIME a day. Bloomberg PERSON your global business authority. When you think of cutting edge technology at sea you might be thinking of stuff like this. But there's an incoming revolution on the high seas that isn't quite as sexy but could be significant. Global trait about 80 CARDINAL or 90% PERCENT of all the world's goods are transported see at some point but there's a significant unseen cost to the modern era of global commerce. Of all the worlds is huge. Three% GPE they not sound like a lot but that's roughly comparable to the entire COtwo output of Germany GPE . Since reducing trade isn't a likely option. What about a technological improvement to help reduce the emissions from these well stocked maritime behemoths? Everybody is talking about the metaverse as something that's going to happen in the future but there's an argument to be made that roadblocks has already built. A better verse what do you think I think we've started It goes back to how exciting it is to to have a company in the space that I think is ultimately got so many years of growth to it and it's a new category following other types of technologies. There's still so much innovation to be done And there's so much invention to be done in this category that it's mind boggling. The critics think that metaverse, the term, it's just marketing. Respond to that. This type of technology is much more difficult than than net or the web which was another huge thing that we saw predicted and has started to come but but I think we're seeing early signs of it. When Mark Zucker Change Facebook's PERSON name to Meta ORG as if it was something new. Did that kinda bother you? No, of course not. It's really hard to predict in five to 10 or 20 years CARDINAL . What are the companies that really figure it out? And there's so many elements of innovation that are needed. Having a UGC ORG community one CARDINAL of our strengths we think that's like a huge starting point for us but we're early in our quest for innovation here Roblox PERSON has built a huge business selling robes does this evolve into a much bigger Marketplace. Evaluation that people would ultimately make a living on platforms like this that started this digital currency is very roadblock centric and that we're a systems company or utility so it has form this robust economy it's allowed us to keep robot you know roadblocks is free for the Would Roblox ever partner with some of these other companies working on the Metaverse whether it is Meta ORG or unity or epic or Microsoft ORG ? Core ORG technology. Going to a concert together and waving at your friends. I think that's gonna be a lot of engineering work that each company is gonna be working on and it's gonna be really hard. As far as ultimately, can an avatar go from one CARDINAL place to another? I think they'll be Lightweight ways of starting to think about that. So, what role do you think Apple ORG and Android ORG should play in the meta verse? And and would there policies need to change to really support this vision? The biggest thing we Take advantage of if it were to happen is a change in those store fees. We we stay out of it. We like google and apple kind of run their businesses. But when we think about more and more developers making a living on platforms like us and having to build stuff. If those store fees were to change, we would Most of that money back to our developers. Your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yum. Howdy.
Your goal is to build an entirely new category of human Experience. The next phase of human interaction. Yeah. How do you moderate That on such a massive scale. Yeah. And are you doing a good enough job In the third week DATE , when we were live, you can go imagine Eric PERSON and myself back in our small office. Eric PERSON and I said, oh my gosh, safety and civilities. It's we're gonna have to do. We had maybe 100 CARDINAL people at the time chatting on roblox. We saw a few not that egregious but early signs that we just made the call. This is gonna be The foundation of what we do in the early years DATE of Roblox as we've gotten bigger we've gotten to the point where there's thousands CARDINAL of moderators every image that goes on our platform gets human reviewed we filter texts very stringently especially 13 and under players. We use a lot of AI and ML GPE to help do this. We're always getting better. But it is a key thing for us. After mistake are you about AI and tech being able to do that I'm really actually optimistic we would never compare to the real world because our standards are so much more stringent but I do believe this will just keep getting better and better and I think overtime it'll get to the point where if a 6 year old DATE is on our platform it's As if the parents wanted to be there with them watching everything we'll be able to offer that type of thing no a lot of parents are terrified they're terrified of a future matters they don't understand the parental controls do you understand that feeling we do we actually have to I think it creates a higher For us because I think we can't assume every parent is gonna get that involved with their kids. There have been some serious content challenges, you know, the stories about Roblox being a playground for virtual fascists. What? Own child seeing an ad for a game that claim to have a sex tape of her. That was very unfortunate. There was a text blur about very shortly that very very few people saw. We took the place down. We moderated that user in the platform. It was not the video was never on our platform. There was no imagery on our platform. It was a very short mention. But very unfortunate and Well, you know, our vision is to be the most civil place for everyone. Alphabet in Google ORG . This question about kids and tech habits and screen time and he said it's something that even stresses him out. You know, this is the guy who runs one of the most powerful technology companies in the world. I have four CARDINAL kids. You have four CARDINAL kids. Did it stress you out? Like, how did you deal with your kids? How much it's a responsibility of both platforms like us as well as parents. You know, we're all trying to figure this out. I think the one thing that we're very encouraged is that the time spent on Roblox tends to be more Hanging GPE out together we're being on the phone together or doing stuff together and a lot less of it is isolated either consuming content by myself or grinding away at something by myself so we do like the fact that most of this is either We're involved in creation. What about entertainment? Would Roblox ever make a Netflix PERSON show? Bloomberg PERSON has enhanced search on the terminal. To deliver what you need when you need it. Now, you can simply type phrases in everyday English LANGUAGE in the command line. Compare financials You can enter phrases Ask questions What do you want to know today DATE ? Ask a question or visit search go to find answers now. Access the financial world on demand.
Access the financial world on demand Hear from leading economists Policy makers. And industry experts via live and on demand webinars. Only from Bloomberg ORG . Start exploring to see what's moving the markets. Visit Bloomberg PERSON . Com webinars You've been investing in high fidelity graphics what is the end game here for you know more human more realistic avatars way out like a science fiction writer and talk about And I what I'm talking about now is super difficult. The end game sometimes we talk about we would go together to a rock concert or whatever concert you like. We would be there with 50 1000 CARDINAL other people. It would feel like a movie. It would feel like real life. So are you pushing towards something like meta horizon worlds PERSON ? Is That's You know, more experiences like that for adults. We sometimes think of roblox ultimately as fading into the background as a utility like the electric grid. Even those photo realistic and there's all these awesome avatars and connection and identity around the The things we start seeing built on this are wide range of things. So, you imagine this not just for kids but for everyone. Adults too. Okay. Absolutely. What about entertainment? Would Roblox ever make a We would love it if one of our developers made a Netf GPE So we would we would feel much more authentic if one of the creators on roadblocks who's coming up with avatars and stories and ideas and characters like that we want them to be in the limelight Roblox PERSON chairs took a dive on the back of Netflix GPE results Obviously plummeted. Our investors reading too much into the connection there. I think our company is somewhat unique and what is very exciting to go to work and be the CEO is being at a market like this, you know, where we think ultimate Billions of people are gonna use this type of technology and the other exciting thing about this market there's so many big inventions that still have to happen it feels like we're pretty mature but inside our company we realize like there's six CARDINAL or seven CARDINAL big inventions we need to make to get to that next step would roadblock Consider more in game advertising. Yeah, there's a funny trivia note I would share to all the Roblox PERSON fans out there. There was a time. The very first ORDINAL way we monetize was advertising and then there was also a time when we had pre-roll video on Roblox PERSON . That's all gone now. It's gone Couple of reasons. We didn't want it to interfere with the user experience. And also our our virtual economy has become such a powerful way to power this that we are able to take that down in the future though. I think there's a certain type of That is kids safe that is immersive that doesn't get in your way. Yeah, I think our the people on Roblox PERSON , you know, they're there to authentically connect with their friends As long as what we're doing with these brands is very clear non deceptive, appropriate for those ages DATE . I think they'll they'll figure out the balance of how much time do we go into a store versus how much time do we go to a crazy adventure tycoon and you know, build an amusement Together ORG . So, either way, this could be a huge new revenue stream I believe it's an awesomely huge revenue stream and at the same time, we've been very gentle towards it. So, as you look ahead, what do you think are the biggest challenges? Roblox will face. Vision plays out which we hope it does and we have people of all ages on the platform and we're around the world I think maintaining that civility as we grow as we have older people who might wanna do go to a political rally thinking ways to do that in a systemic way that's a big challenge it takes a lot of thought I think thinking through the I I really like we're very technology driven company so it's fun to be running a company where we have to do these seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology
And to be running a company where we have to do the seven CARDINAL big inventions and you know what we're doing right now isn't gonna cut it so knowing that technology challenges super interesting. We do a little rapid fire section just to get this. Okay. Try to be awesome. First ORDINAL question what's your morning routine Wake up. Outside on my porch do a crossfit workout Take a shower go to work. Where are you most productive? Home or office? Both. Different types of productivity, homes, and state, flow state at time, office, connecting, being together, brainstorming. What's your favorite show What are you binging? Oh my gosh. If if you look at my YouTube ORG history, it'd be it's it's this weird mechanical stuff. Off-road vehicles and rockets and ships and big waves. Best life hack. I think it all gets down to the joy of health really like if if I'm not, you know, feeling centered but sleep, exercise, diet, all of that, everything else just completely falls. Radio show. Yeah. Now that I've met you in person, I I get this. No way. You've been pretty fun to listen to yeah what was your style like what was your Starting in college when I would have insomnia at 2 AM TIME I would turn on talk radio and you know all those famous KGO ORG people Bill Wattenberg PERSON Just listen to the people calling in. So, I after acknowledge revolution was acquired. I had a year DATE . I had a little time to dabble. My jam was really trying to talk about outrageous topics, you know, Gambling, other controversial things. It was in a small market in Santa Cruz GPE . I would typically is really hard to get people to call in. Yeah. You know, it's like call your mom. It's really scary if you're a DJ and no one's calling you inside. I I made it really controversial. I have people come on and debate interesting topics. If you could have dinner with Steve Jobs PERSON or Walt Disney. Towards you back. You can't pick both. I guess I would have to slightly lean Disney ORG . Just because he was not just the usher of the innovation but actually was kinda part of the The innovation. But I think Steve PERSON leaned much more on finding the people to drive that innovation. Best advice for your 20s. Don't freak out if between the age of 22 DATE and 25 CARDINAL everything is a disaster. Best advice for your 40s DATE . Life is short. It's such a valuable commodity. What you do, your friends, your time, your family is so important. So, how do you define work life integration? I don't like the work balance. I would say can I Make my roadblocks job better than anything else I would Like can it be better than retiring? Can it be better than a hobby? Can I figure out what my unique job is a CEO? Every CEO job is different. Like I like doing it. So, can I figure out what my role is? You mentioned your co Eric Castle PERSON . Yeah. Earlier who died Of cancer. Yeah. In 2013 DATE . If he was here today DATE , what do you think he would think of the roadblocks that Roblox has become? I think he'd be proud It's a good question. Yeah. Like, I think he would you know, his both of his sons have worked at the company a bit. So yeah, I think he'd be very excited. Seems like you you miss him. Just such a brilliant partner. Yeah Any he also set the standard for taking the long view on how we engineer things a lot of the Roadblocks is still You know, his vision lives on. And it goes back to your advice for your 40s DATE . Life is short. It is. So, in 5 years DATE , will the metaverse exist? In in the form that you imagine or is it take does is it Much longer like what's the time horizon? Well, it's really interesting, right? Cuz we're right in the middle of it right now. In a sense with 50 1 million CARDINAL people every day on our platform. Yeah. It's already here. And at the same time, Ultimately gonna be possible could be 510 CARDINAL or 20 years DATE , out. So, it's it's all the anniversary really has existence since Online dial up muds really twoD very simple text
Enter 20 years DATE out so it's it's all the verse really has existence since Online dial up muds really twoD. Very simple. Text. You can call that the Mediverse PERSON . It's existed in multiplayer gaming, world of work, Exist now with more people and in 10 or 20 years DATE it'll exist photo realistically with 50 1000 CARDINAL people Have so much passion for this job Roblox your final stop on your journey. Well, definitely my finals but I think there's a lot of time ahead of me here. Dave Bazuki PERSON over a blocks. Thank you so much. People ask me all the time, what is the key to being a really good investor? I tell them, it's a surround yourself with and work with the best investors you can find. On Bloomberg Wealth PERSON , I'm gonna take you to meet the greatest investors in the world. The people that I would like to have managing my money. That the start of the internet revolu I have kicked up a lot of controversy declaring that the internet had been under hyped. I say the same thing today DATE about the climate revolution. Ken Griffin PERSON is moving both Citadel and Citadel Securities to Miami GPE that was broken by Bloomberg PERSON 's Amanda Bloomberg PERSON . It's a great question. Great question. I'm glad you said Hey Crucially important and I think we've moved from this attitude from it's an indulgence a waste of time almost an illness that needs a cure For something as universally important to human life Sleep mystery surrounding its necessity and utility have only just been recently uncovered. Some of our biggest discoveries were in the 1970 DATE 's or 1980 DATE 's and so it makes it a really exciting field because it seems as though we're uncovering new insights each and every day. Some scientists are going further to find out how sleep and what happens there can be harness to further expand our understanding It's easy to memorize that makes you smart if you can spit it back a lot of back but if you wanna be wise if you really want wisdom you gotta know when and how and why to use that information And that's what your brain figures out while you're sleeping. A very good morning welcome to Day DATE Break Australia GPE I'm Hardie Stragg PERSON what's in Sydney GPE ? Good evening TIME One CARDINAL central bankers gather this week DATE for their annual DATE retreat in Jacksonville GPE .
Central Bank ORG For their annual DATE retreat in Jackson Hole GPE Chinese NORP bands expected to slash key landing rates for the first ORDINAL time in months DATE as the economy battle severe headwinds. China GPE 's energy crisis is adding to those economic pressures. So, Trump province now said to what send limits on power supply to some industrial Source by 5 days DATE . 500 CARDINAL Since June and we're seeing the pressure continue in the Asian NORP session of course we had two 1 trillion dollars MONEY of options expirations I really didn't With the volatility with the big Level we have seen treasure years also This week DATE at Jackson GPE holding order to gauge what the favorite trades of the year DATE will be so far this year a flattening yield curve has been the wager of the day take a look at crude prices under There has been that conflicting dynamic about perhaps Some of those Uranian NORP oil supplies that climb could be pretty fast. This is what you Back in 2015 DATE after the nuclear deal today DATE President Biden PERSON spoke with Western leaders about where those nuclear negotiations where and if history is any But we could see a fast revival of that output if a deal does come in place Yeah sure it'd be interesting to see what that means for energy prices because any sort of cooling that we do get there could give Asian NORP stocks as well a bit of breathing space in terms of the direction though for market New Zealand GPE already online to the downside here. You mentioned the dollar direction we're looking a little bit mixed in the G 10 space You can see here the moves in the Aussie and the yen as well with trade is very much focused on what happens this week DATE at Jackson Hall FAC now the other major factor Four CARDINAL sentiment in Asia LOC is what we see from China GPE because if we change on now we have more than 300 CARDINAL companies reporting earnings here this week DATE on the mainland now the focus for that of course In terms of how bad the numbers are versus what was indicated in the second quarter DATE economic data but in terms of what analysts have been doing will they be downgrading there forecast for earnings for every single sector here except energy and industri There are the energy shortages that Need ORG to grapple with as well. Does one CARDINAL of those issues playing investors mine's at the moment and Bill PERSON you mentioned China GPE earnings we're in the thick of Ernie ORG 's still here in Australia GPE trickling through this morning TIME is Lenley PERSON 's we do have a 4 year DATE net loss being declared of 90 CARDINAL One 1 million Aussie dollars estimates were for a profit of 149 CARDINAL . 2 million CARDINAL so a huge miss there the final distribution per security of Operating profit coming in at 276 1 million dollars MONEY they also announced what is going to be a updates when it comes to that Ability linked to lines that we have seen really the climate change issues spurring green bonds in Australia GPE to what is setting up to be a record year DATE but landly is they're probably developer could really be facing these additional challenges to deliver on some of these commitments as we see the broader econom Slow PERSON down as well as really you know what what we can continue to see as the slow down in the property sector here as well. And lots more coming up when it comes to daybreak Australia GPE . We'll be talking all of through those headlines headwinds as well as of course the outlook for the global economy. Show the Up for a big week DATE ahead with Central Bankers NORP gathering at Jackson Hall FAC . Take a look at what is really coming up for you. We're speaking to a lot of great guests including Tony Lombardo PERSON from
A big week DATE ahead with Central Bankers NORP gathering at Jackson Hall FAC . Take a look at what is really coming up for you with speaking to a lot of great guests including Tony Lombardo PERSON from Landley ORG 's joining us on those latest results at 12:30 PM TIME : in Sydney GPE . Yeah. Write the idea as you mentioned of course a key focus is on what's happening at Jackson Hall FAC this week DATE right and really it could be resetting market expectations because Are really taking a look at what the favorite phrase of the year happened in treasury markets and that could really take a turn depending on what your power says let's bring in Bloom Correspondent LOC Asia Edro PERSON , Andrea Papo PERSON , Kathleen ORG , let me start with you because really expectations are high for what we could expect from Chair Powell PERSON this week DATE but we've had a Officials emphasizing the need for higher rates. Great way to start off this conversation because Jackson Hall FAC is it's there's no other Is this central banker that sort of sets the the course not only for the US GPE but frequently for others other A social banks, other markets as well, and I wanted to start by reminding everybody back in 2010 DATE , Ben Bernanki PERSON , Fed Shear ORG , signaled the second ORDINAL round of quantitative Is Paul gonna do something like that? To be what the single is gonna send is very very key because now remember this is the He's gonna be speaking since that CPI headline number pulled back from nine CARDINAL . One% in June to eight and a half percent DATE year over year and then you got a job Report the payrolls that were up 528 1000 CARDINAL twice what was forecast in the month of July DATE so that's a push pull there so the question is is he ready to risk To get inflation down and markets right now are seeing fed ORG tightening slowing perhaps partly because of that consumer price index starting to look a little bit Will he jump on that bag and bandwagon I should say. But you look about the what's being expected here you can see overtime that expectation for where the funds rates going this year DATE next has gotten higher it's up to Next year DATE . So, it still has a about 100 CARDINAL Basis LOC points more to go Tom Barkin PERSON his president of the Richmond GPE fed on Friday DATE made it pretty clear he's on he's on the side saying we'll do whatever it takes he said we're committed to returning inflation to our two% ORG target and will do what it takes to get there there's a path to getting inflation under control or recession could happen in the process he's not It's not that kind of speech it's gonna be big picture and have a Kinda GPE longer term note than that. However, I would say one CARDINAL thing hi if power focuses on how they can get a soft landing and not so much on we're gonna keep pushing hard even if it means recession markets Take that as a little bit. Kathleen of course we're also watching in terms of the broader environment in China GPE and Steve PERSON we're watching for that loom prime rate is that likely to really track the pivot we saw from the PBO Given that we're seeing all of these indications of an energy crisis as well. Yeah, that's right. That'd be obviously the Chinese NORP economy is suffering right now as slow down numbers across the board in July DATE and as Kathleen ORG , we're just talking about you know, the Fed ORG Is going to be tightening. Well, the PBOC going in the opposite direction. They had, of course, the cut to the 1 year DATE MLF ORG . They also cut their 7 day DATE reverse repo, loan rates. I am, this is likely all to set the stage for the fixing later today DATE , for the loan prime rate, the one On prime rate expected by all the economy surveyed by Bloomberg PERSON 16 CARDINAL of 16 CARDINAL to have at least a 10 CARDINAL basis point cut to three CARDINAL . Six% GPE today DATE on the 1 year DATE LPR the 5 year DATE LPR a little bit of a more of a mixed reaction Bloomberg PERSON expect an even bigger cut to the 5 year DATE loan prime rate which is more closely associated with mortgages keep in mind bank lending to the real estate sector we all know about their problems
Even bigger cut to the 5 year DATE loan prime rate which is more closely associated with mortgages keep in mind bank lending to the real estate sector we all know about their problems has dropped or Drop PERSON in July DATE for the first ORDINAL time in a decade DATE and corporates and households have shown a reluctance to borrow right now given a week and a half ago DATE or so that bank lending and aggregate financing numbers which really dropped off the cliff in July DATE . Yes, it's a According to Bloomberg PERSON can you mention about those Shortages ORG in situan and overall down in the south where temperatures have been above 40 CARDINAL ยฐ for a number of days DATE we've had no rain in Chungdu GPE for 15 days DATE no rain in Tong Ching GPE for 18 days DATE non jing and nonchang haven't had any rain since early July DATE so if that's exacerba Obviously the water levels at the hydroelectric dams power shortages are gonna be extended to the corporate sector of beyond what was supposed to end on Saturday to this Thursday DATE factories like Toyota ORG and CATL ORG the big battery maker for EVs they are extending Plant closures as well. So, yes, more strain on the Chinese NORP economy. Thing that's happening in China GPE not to mention of course the upcoming Jackson PERSON whole meeting Andrea PERSON what are we expecting when it comes to trading and investor mode in Asia LOC ? Hi, Sherry GPE . Yeah, look, that's right. I think what one of the major things that markets are going to be looking at is the shape of that yield curve. You know, that is becoming a March DATE more difficult trade given how far you know, that Has has inverted and you know a lot of depend on those nuances from Jackson Hall FAC in front from what And look it doesn't it's not as much now about how many more rate heights there will be but also the economic consequences of you know of these raid heights you know and and you know we have seen that Actually you know steepen Last week DATE and he just shows how complex this is for for investors. So, yeah, we're bonds are going. The shape of that yield curve is going to be a major focus for investors this weekend DATE . We sort of we're seeing that we're Get under pressure when when trading starts in Asia LOC today DATE . Yeah, Andrea Papo PERSON , Bloomberg GPE , school economics and policy at their cathing. Chief North Asia LOC correspondent As well with our top stories today DATE . We'll have live we'll be live at Jackson Hall FAC later this week DATE for that crucial powel speech as well as interviews with vet presidents from Kansas City Philadelphia Saint Louis Cleveland ORG and Atlanta GPE as well let's get over to Bonnie Quinn PERSON The fourth ORDINAL world headlines. Thank you. Prime Minister Anthony Albanese PERSON has taming inflation is a key priority for his government. Headline inflation was running at the fastest pace in 21 years DATE in the second quarter DATE and it's forecast to accelerate even more by year end DATE . Speaking with Sky News ORG , Albanese NORP , echoed advice from the treasury department ORG and reserved bank that inflation will not hit 10% PERCENT . Singapore GPE is repealing a colonial era law that criminalizes sex between men. Prime Minister Alicia Lung PERSON says removing the legal ban on sex between men is the right thing to do and something that most Singaporeans NORP will now accept. Recognizing same sex unions adding that the constitution will be amended to protect the definition of marriage as being between a man and a woman Japan GPE 's government says Prime Minister Funya Akita PERSON has tested positive for COVID and has relatively mild symptoms. The 65 year old DATE developed a cough and slight fever on Saturday DATE Prime minister's official residents and is expected to resume duties remotely on Monday DATE . China GPE 's latest COVID outbreak is worsening with new cases jumping my more than 2000 CARDINAL over the weekend DATE in Southern Island LOC of Highlands are the most new infections with more than 1000 CARDINAL report Followed by Tibet GPE and Tin Tang PERSON . In Hong Kong GPE daily DATE cases rose to the highest in more than 4 months DATE on Sunday DATE at six and a half 1000 DATE the city is reopening one of its biggest isolation and facilities as the surge puts pressure on hospital
Daily cases rose to the highest and more than 4 months DATE on Sunday DATE at six and a half 1000 DATE . The city is reopening one of its biggest isolation facilities as the surge puts pressure on hospitals. Global news 24 hours TIME a day on air and all Bloomberg PERSON quick take powered by more than 2700 CARDINAL journalists and more than 120 CARDINAL countries I'm Von Equin PERSON this is Bloomberg Sherry PERSON . And fill ahead while the previous listed or generally set to hand down legal advice on former Prime Minister Scott Morrison's PERSON secret ministries one of us really Most respected political commentators gives us her take later at TIME this hour TIME . As we look ahead to the trading week this is Barring GPE . Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and yo, the digitalization of everything. Tell me what aspect of your life, Emily? Is it becoming more digital? Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . Industry overall. Estimate are one 1 trillion dollars MONEY . A doubling by the end of the decade DATE . At that point, I believe those estimates. It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology but which only three CARDINAL companies can satisfy that needle. It's curated Three and a half percent DATE . We get July DATE CPI data. On Thursday DATE , traders expect the Bank of Korea ORG to raise its key rate by 25 CARDINAL basis points. And the Jackson Hall FAC economic symposium begins always closely watched for clues on the path ahead for the thread and the other central bank. Also more major Chinese NORP companies set to release earnings data this week DATE MSEI China ORG earnings per share estimate suggest aggregate profit Revenue that I'll be consensus calls for a contraction COVID related
I'll be consensus calls for a contraction separately Quanta ORG is set to report on Thursday DATE giving investors a look at how a tight labor market in COVID related Are affecting the Aussie GPE flat carrier. Officials Bring in the XM Australia GPE CEO Peter Maguire Peter PERSON good to have you with us of course this chart on the Bloombrook PERSON just right off the bat we're seeing financial conditions starting to ease again this is not what the fence has wanted to see will they need to address this and what does it mean for us it's Well I'll take a good good morning I think it'd it creates a headaches naturally we're gonna be interested what a discuss this week DATE and what the rhetoric coming out Jay Powell PERSON and his gang We've had a very strong move to the upside and naturally over those last 8 weeks as far as US GPE equities and is that going to maintain over the September October DATE period or we gotta see a pool back and there's many analysts saying that we're gonna see a pool back. It's been the unwinding as far as short bats and hedge funds and options All those sort of things. So, this is the dilemma that the Fed ORG 's facing and how they move forward. And of course we have seen the dollar already rising to that Weeks DATE since April 2020 DATE or so it's been a good week I just to say that the Green Bag LOC has continued to rally if we do see a What does that mean for the US GPE currency? Well, I think first ORDINAL off, it's the best of a bad bunch. So, there we face it. It's currently sitting at the over 108 that US GPE dollar index you've seen the Yen PERSON being hammered. I've got smash last week DATE . The Euro at Parity, the pound, going under massive, yeah, I pushed the So the overall on the commodity currencies are being you know smashed as well kiwi and the Aussie so the US GPE dollar seems to be king dollars raining supreme trade as a loving it and I think that there's probably further upside By the end of the month DATE . Peter PERSON , when you take a look at the Australian NORP earning season, how does it compare to what has been kind of a collective side of relief in the US GPE ? What is the next I guess 6 months really whole in terms of the the guidance Had so far. I think the major concern is what we're looking as far as the domestic situation in Australia GPE Wage growth what we're doing withinflation the general consensus on main street the herd out there we all understand the conditions that we're all facing and you know high energy costs and so on so the how that rolls across to the balance Equity markets and the in the large companies is going to be interesting. It could be a you know it might be a very tough timer. I think for domestic equities After Christmas DATE so we're just sitting on our hands looking and seeing opportunities but it's I think it's volatility is going to start a ramp up over the matter of the next matter of weeks DATE Which will be interesting when it comes to this not just rotation into growth with what you're seeing with the Nazdac ORG 100 but the rotation back into these memes stocks right what do you make of that peter bag Addition to the bounce that we we're starting to see across crypto as well. Well exactly I'll tell you what the main stocks have been outstanding over the last couple of weeks DATE to look at and just observe trade as a loving and I'm I'm really get off on the on the chatter that you're here and you know all the comments it's yeah I can see why so many traders enjoy those those interactions at And the opportunities are immense so yeah I've I can't go out there and say hand on heart what's going to be the next one to follow but they're never sure to surprises and you've only got a look at Over the last couple of days DATE to really take an appreciation of what's going on with some of these stocks. Peter McGuire PERSON , good to have you with us. XM GPE , Australia GPE , CEO, setting up, up for the rest of the week DATE when it comes to the market. You can actually get a Of all of those stories that you need to know to get your day going and today DATE 's edition of Daybreak WORK_OF_ART . Terminal subscribers go to Davey Go ORG . You can customize your settings. So, you only get the news on the industry and the other
And you need to know to get your day going and today DATE is the day DATE of daybreak. Terminal subscribers go to Davey Go ORG . You can customize your settings so you only get the news on the industry and the assets that you care about. Hey sis balloon bark. While Tesla ORG 's in the like make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? Give us the energy electricity we need we wanna do 100% PERCENT clean energy Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all buildings And if we do it in all buildings we'll reduce 30% PERCENT of US GPE greenhouse gas emissions. Covering all things crypto. As the world watches inflation rise employment rebound and fiscal policies react all roads lead to Jackson GPE home for the kansas city fence ORG 2022 CARDINAL economic policy symposium Bloomberg PERSON Here's a quick check of the latest business flash headlines Warren Buffett's PERSON brochure Hathaway PERSON one approval from US GPE regulator Subaia GPE as much as 50% PERCENT of accidental petroleum brochures spent the year DATE wagering more on accidental after four CARDINAL making a bet on the Houston Bay Stoil LOC company three CARDINAL Retailers are feeling the pain, bed bath, and beyond chairs, tumbled as much as 43% PERCENT after Cohen PERSON 's exit. Paul now said management will be in focus when China GPE opens for free that's after Mooney PERSON 's investor service put it on review for possible downgrade it says the bad Territory. Taking a look at the day DATE ahead for Australia GPE , New Zealand GPE . It's another big day DATE for earnings for a number of companies. We just had Lent knees. Reporting a full year in that loss of 99 1 million Australian dollars MONEY or 67 1 million MONEY US GPE . Millions CARDINAL of frequent flyers made
Over flight cancellations, delays, and offering $ 50 MONEY off, return flights for millions CARDINAL of frequent flyers based in Australia GPE , New Zealand GPE . And fresh red Jim Thomas PERSON says work is underway to improve regulations on crypto acids including a consultation with stakeholders and the start of a token mapping Yeah we'll be watching those assets as we get trading underway here in Asia LOC but take a look at the US GPE futures picture we're seeing S and P 500 as well as Nazake ORG future's extending those losses at the start of the week DATE heading into of course a big Jackson GPE whole wig buy those declines that we saw really we get at the end of last week DATE treasury ORG features just modestly hard WTI Are also seeing a little bit lower there as well of course we've talked about euro dollar MONEY heading towards party 4200 CARDINAL is the level to watch when it comes to essence S and B futures in terms of potentially that acceleration into a deeper cell of take a look at the picture for risk as we get into Monday DATE session here in Asia LOC though that softer finish for the US GPE session as well as Bons ORG on Friday DATE . It sets up for a pretty volatile start. We are seeing Sydney GPE futures sitting a little bit lower. The Aussie GPE dollar that really risk of sentiment playing through at 6873 DATE , and some weakness for Nikay futures as well, Sherry PERSON . Hi they will have more on Australian NORP season throughout the day DATE including an interview with The Indian NORP city of Jamnigar is a money making machine for Asia LOC 's richest man Mukesh Ambani PERSON His company reliance has the world's biggest oil refinery complex here in the city. Jamnagar ORG is also wearing is making his newest bet. A 10 1 billion dollars MONEY investment in green energy. His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE But Barney PERSON is not alone. India GPE 's second ORDINAL richest man Galta Madani PERSON has committed 20 1 billion dollars MONEY of investment over the next decade DATE . But India GPE 's massive dependencies on fossil fuels have some environmental applicants questioning the realism and sincerity of those green ambitions and those of its two CARDINAL biggest billionaires. Hey Facebook Welcome to Dead Rock Australia We're counting down Are you guys excited? This is a question because we have seen those conditions easing lately and I shouldn't be the Yeah, that's right. So basically Bank of America's ORG got a node out this morning TIME and essentially what they're saying is that they're expecting the fed ORG and JPO ORG specifically this week DATE at To reinforce this commitment to price stability even at the risk care of sparking a rec Went into this Jackson Hall Symposium FAC with
Well a year later DATE of course it's a very different scenario indeed so we are risking inflation Also expecting to keep with this message a restrictive policy even Against this idea of pivoting quickly to rate can't so if you change on now taking a look away bank of America GPE sees us going from here so if you take a look at the midpoint of the Funds rate target range. If you just bring up the terminal chart, you can see here, we're at two CARDINAL . Four%. We'll bank of America GPE sees that getting to three CARDINAL . Five to 375% PERCENT . By the end of the year DATE and no change here in inflation or in We see a change inflation at eight CARDINAL . Five% and they need to get it of course Heidi PERSON down to around two% ORG . Stand the chart for one CARDINAL bell thinks that you know let's not get ahead of ourselves because that full impact of the Fed ORG Tartney Moose may not yet be felt. Yes this is interesting as well because of course we've had that big move high in global stocks since those June DATE lows up nearly 10 CARDINAL And also that rally in risky assets but standard charter says that's really just been off the back of this expectation that the What is going to be at the final stages of its tightening cycle and that could certainly not be the case. So essentially it says that the full impact of tight Is still do we feel that we change on now what that means in terms of their their strategists while they're saying that the risk award of playing for a recovery in growth and risky assets is looking a little bit less appealing Also saying it's gonna be getting a little bit noisy ahead. Just a lot of uncertainty ahead of what is a very big week DATE for Central Bank ORG really passing those comments that will be getting a little bit later on out of Jackson Hall ORG let's get you to Vonny Quinn PERSON now who's in New York GPE with the first ORDINAL word Lines funny. Katie PERSON , thank you. Richmond GPE fed ORG President Thomas Barkins PERSON has the central bank is committed to taming US GPE inflation even if that means risking a recession. Mark PERSON and says policy makers will do what it takes to return inflation to the two% ORG target while acknowledging that a recession could happen in the process. Speakers have agreed more rate heights are needed while debating the size of the next move. India GPE 's food department says it is no plans to import wheat with current stock sufficient to meet requirements reserves decline to their lowest monthly DATE level in August DATE while prices have surge nearly 12% PERCENT . Bloomberg PERSON sources say government To help flower millers and some regions get supplies Germany GPE may not be able to replace all its imports of Russian NORP national gas this winter and might have to resort to nuclear power. Chancellor Decades has forced politicians to look at alternatives including atomic energy with Journey Germany ORG had decided to exit permanently by year end DATE . Global news 24 hours TIME a day on air and Dom Bloomberg PERSON we take powered by more than 2700 CARDINAL journalist analysts and more than 120 CARDINAL countries I'm Bonnie Quinn PERSON this is Bloomberg Sherry Hey Bonnie Singapore PERSON will scrap rules for wearing masks in most indoor settings as it moves further away from pandemic era curves managing editor global business Emma O'Brien PERSON joins us with more in this Emma PERSON so Singapore GPE Really lifting those restrictions that we've seen throughout the pandemic. What do we know? Yeah I mean Singapore GPE is really moving ahead most distinctly against Hong Kong GPE in terms of those financial centers here in Asia Dismantling LOC one CARDINAL of its last most significant virus curves. The wearing of masks, indoors, that means so you no longer have to wear a mask in offices, in public places like restaurants, movie theaters, that sort of thing. So really big step toward normality is cases come down 3000 CARDINAL a day in Singapore GPE which has really sort of led the way somewhat in that normalization step. A pretty big jump in numbers for China GPE . Big big four CARDINAL China GPE of course is a lot of this coming through from Saint GPE
Normalization step. Had a pretty big jump in numbers for China GPE . Big big four CARDINAL China GPE of course is a lot of this coming through from Sonia GPE . Yes, that's right. Hi, Nan Island GPE . Continues to be a problem. This is the southern province Some of the infected down there that seeing consistently around a 1000 CARDINAL new cases Are they trying to move some of the tourists out of out of the island trying to get them home they are subject to a raft restriction Typical with China GPE 's COVID oh situation. Lots of tests and mandatory isolation for a couple of days DATE once they do get back to their home places within China GPE . And In Japan GPE we've really seen cases hover it pretty close to record highs for for a while now right now the prime minister is actually tested Yeah Japan GPE sort of someone in the middle between sort of Singapore GPE and then obviously China GPE on the extreme and they are keeping some restrictions in place particularly around travel tourists cannot freely travel in and out of Japan GPE unlike Singapore Wave ORG cycle The top of that now of course exemplified by the infection of the prime minister who apparently has a pretty mild case and will return to some work duties Of course today DATE . And am I you mentioned how Singapore GPE was going in the opposite direction to Hong Kong GPE ? What's happening in the city? Yeah I mean you are seeing a wave really start to pick up there and it's affecting the hospital system it is Isolation ORG centers which they used to house people that can't Biggest isolation sites has been reopened. They've added 200 CARDINAL beds there. So a real sign of of how Hong Kong GPE continues to sort of Federal ministries broke the law Michelle Bratton PERSON next. Embark. One CARDINAL of the most important things is looking around the corner. We have to let go of the traditional legacy department store. We tend to believe that all consumers are equal they are now look for cheap future officer on Bloomberg PERSON
Alright we do have just some more earnings crossing the Bloomberg Star Entertainment ORG here really reporting these results given what is a difficult situation for the gaming environment here in Australia GPE with a number of inquiries of course happening across different states sorry entertainment reporting car 4 year DATE cup packed about 150 1 million dollars QUANTITY . Revenue trends from the fourth quarter DATE continue into the early first half of full year 2023 DATE . We're also looking at full year international VIP rebate that win rate at 265% PERCENT . There. Start. It's entertainment. The final dividend per share. Not issuing one in And that full year DATE normalized Normalized ORG numbers coming through there as well given that we have seen just a difficult operating environment that full year DATE net loss coming in $ 198 MONEY . 6 million CARDINAL and it has been just a really Challenging. When it comes to how the stock cost Down PERSON just about 15% PERCENT versus brought it downside for the AS 51 CARDINAL of five CARDINAL . Two%. Take a look at how we're tracking when it comes to the start of the trading day here in Asia LOC . We are seeing the Aussie GPE dollar really bearing the brunch of that risk Sentiment going into Jackson PERSON a whole wheelchair attempt to kind of hit reset what it comes to monetary policy and inflation expectations we've seen the Aussie GPE just turning positive but very much under 70 US GPE sent level where we have seen. A bit Peak. It's a day features off by just about four CARDINAL tenths of one% ORG there. We do have the a little bit of a move when it comes to kiwi. It kiwi stocks Down PERSON just about two CARDINAL tenths of one% ORG . That second quarter earning season DATE has been Restoring PERSON a little bit of faith when it comes to guidance but certainly perhaps has not been as robust as what we've seen in the US GPE earning session. And of course politics remaining at the four CARDINAL when it comes to what's going on here in Australia GPE today DATE . We are getting the the solicitor general advice when it comes to Former prime minister's got Morrison PERSON . He'll be finding whether he's secret swearing in for himself to five CARDINAL ministerial posts broke any laws will be getting that as soon as it crosses But in the meantime let's get some analysis now from the University of Canberra's ORG Michelle Graton PERSON who joins us with her analysis Michelle PERSON great to have you and we look we're not expecting that that advice is going to suggest that any laws Broken PERSON . Really raise a question of whether there should have been laws in place to prevent this and is is a damage already done when To the liberal party. Hi we're on the question of whether there should be laws in place or should have been I think that you can't cover everything by law that conventions are important and really what we're talking about here Convention and proper behavior. No one would expected a prime minister to take this action. It wasn't necessary to insert himself Julie PERSON 's portfolios even in Situations I think that the idea that leader wouldn't tell his colleagues was just bizarre. In terms of whether damage has been done yes to an extent damage has been done because there's a lot of talk about undermining the democratic system But nevertheless the fact that this has been exposed I think shows To there's AA certain In the system for the future that leaders would be much more careful much more aware of conventions in the future having said that I think that the Labour ORG government To formalize convention at least up to an extent. The prime minister's reaction to this has been quite interesting because this is
Formalized convention at least up to an extent. The prime minister's reaction to this has been quite interesting because this is really just a A news piece that has fallen into their lap at a time when there's a lot of domestic pressures Actually was quite defensive when he he was accused of you know talking about this as opposed to cost of living pressures as opposed to rising interest rates but he said this is what he keeps getting asked about how do you see the the Labor Party's ORG handling of this low governments handling of this and you know is there any fairness to the criticism that there he's still beha Opposition leader. Well as you'd say there's no doubt that the labor party using this basically And they would have memories of the coalition When he came in to government pursuing the former Labor ORG government so there's a bit of payback in there in the background I think that the Labor That it's got to be All in using this situation that it's got to be seen to be going through the proper processes In the way handling it but it is right that I think that the issues that the public Really concerned about not the past obviously Hey The previous prime minister but we are facing real Now of cost of living and real wages going backwards and I think that the government in the next couple of weeks DATE will want an emphasis on Job PERSON so much which comes at the end of next week DATE and that will be looking at issues such as getting more people into our labor market more integration things like that. That's what the real world is primari ORG Concerned about here. There's the latest scandal rocking the opposition members because they're the ones who have to really dance a delicate dance so they pissing themselves from the former prime minister do they defend him is that going to actually increase the political Capital for the government. Yes it will don't forget that we're 3 years DATE away from an election so in terms of this coming to a crunch in in votes it's a long way off and we'll be long forgotten By then but in the term the opposition is as you say in the very difficult position because it's got Morrison PERSON to run he's still in parliament and I don't think he will be wanting to leave parliament until he can get another And this is hardly improving his Ability. From in the opposition would like him to go now but that creates a problem of a buyer election. Right, so Opposition leader Peter A PERSON pretty difficult situation to put it mildly. And that 1 hour TIME press conference really didn't help him did it. Michelle PERSON can you make Of of why he went ahead and and put himself in secret at the top of those ministries because although he says that he needed to do that because of the Carefully PRODUCT curated those that were he could have full power unilateral power as a minister I think that the central thing come coming out of this just reinforces what we really already knew about Scott Morrison PERSON as a leader that he wanted to control. He wanted How is centralized to a an incredible degree in his own hand The Gave the opportunity for him to do that on a number front he also was a leader who didn't like public exposure to To be secret and I think those two CARDINAL Touristics of him Account for a great deal of what happened
To be secret and I think those two CARDINAL Touristics of him really account for a great deal of what happened? Hey feels almost quite presidential quite Trump ORG asking a lot of ways Michelle PERSON what is the opposition need to do to get over this and become AA viable opposition party Well the best thing I believe would be if Scott Morrison PERSON left the parliament as as soon as But as I say the reasons why it doesn't want to do that but while he's there he's a lightning rod for criticism of the opposition which has got Whole lot of the other problems trying to get back on its feet Therefore We're going to see if it hangs around as we expect is the there'll be more revelations there's another book coming out of only a few months DATE away and that's written by Journalist she's been a very trench and critic of Scott Morrison PERSON it sure has new material and so you'll have another burst just before Of criticisms of him so from your positions point of view this is a no win situation University of Canberra ORG professor Proposal PERSON fellow Michelle Graton PERSON always great to have your insights so we continue to monitor that situation the solicitor general's advice is coming through we'll pour Alan PERSON 's here with another story when it comes to what's going on here in Australia GPE Green Bonds and of course a part of this will be the the big push that we've had from Government in terms of making climate change are a new energy a priority but we've seen a record but setting up to be a banner year for green bonds here yeah definitely you're so far four. 6 billion Aussie dollars worth of visualants that's about three CARDINAL . 2 billion US GPE and starting to close in on that record that we saw last year DATE of six 1 billion dollars MONEY in green bonds issuance Just to put of this on the context still very small globally speaking there's 300 1 billion MONEY of green bonds issued globally this year DATE alone but In in that direction she sent me in the obvious catalyst for change here was the new government and those new policies are 43% PERCENT cut in emissions by 2030 DATE now legislated net oh by 2050 DATE that's now legislator it all got criticized by the Green Party ORG at the time like bringing a bucket of water to a house fire but it is law now and that is Starting to propel green bonds forward now that there's some policy certainty there and yeah we're seeing that reflected in the numbers of that near record amount that we're headed to by the end of this year DATE . I'm here in Sydney GPE more to come. When US GPE inflation numbers are released. Terminal speed. People are going full risk on. Rising
Rising It seems the super car market is holding up just fine. Lamborghini ORG said new records for the first half of 2022 DATE concluding its best 6 months DATE ever when he came to And profit. Winkleman PERSON told us the Italian NORP car maker has orders booked out through to early 2024 DATE . Let's speak about 2022 DATE now we had the the best first 6 months DATE ever in our grand sister in our company's history We speak things are going strong everyday we sell more cars that we are able to produce We will hybridize all of our lineup and the year 2023 is very important for us because we will Unveil PERSON the all new Aventador ORG with a B 12 and a plug in hybrid system but it's also very important here in the history of Lamborghini because Going to celebrate our 60s anniversary Then we have no fear that this would be a fantastic year DATE also and the year 2023 DATE but it's very difficult You know better than me. Stephan, okay. Well, it's going in London GPE . Let's talk a little bit about that as well. Talk about the macro environment it could get significantly more tricky you've only gotta look at what is happening in Germany GPE and Italy GPE to get an idea of the fact that the the consumer is starting to feel squeezed even the high end consumer is having a tough time increasingly step out what kind of a year do you think you're gonna see next year DATE What do you think is gonna be possible? Said it's very uncertain it's very difficult to make a forecast because also today DATE with high interest rates and high inflation we're still going strong also with the the prices of energy skyrocketing And this is a very positive sign but it's very difficult I can tell you that we have a very old solid order bank which is reaching out At the beginning of the year 2024 DATE . So we have covered 18 months DATE of our production. So if there are not big banks happening we should be fine also for the year 2023 DATE . Take a look at how Since April of 2020 DATE not a lot of movement on the other side when it comes to the Japanese NORP yen so pretty weak at that Discuss the outlook for Central Banks ORG plus we'll take a look at
Apples delaying it's next major iPad ORG software update iPad ORG OS 16 CARDINAL by about a month DATE from September DATE to October DATE . Apple ORG made the decision for a number of reasons including a still buggy stage manager multitasking interface and in order to link the launch closer to the more similar MacOS Ventura GPE . Still it's an unusual move In 2011 DATE Apple ORG has released its new iPhone ORG and iPad ORG software updates simultaneously each year DATE around September DATE . By staggering the releases users may find some issues around compatibility with cross device features like retracting and editing messages and iMessage The new shared iCloud ORG photo library in the new feature for transferring Facetime ORG calls between iPhones ORG and iPads ORG . It will also make it a bit harder for developers to launch apps that run on both the iPad ORG and iPhone ORG that require new APIs and features found across iPad ORG OS 16 DATE and iOS 16 Regardless it was still of course the right move Stage manager on iPad ORG Ottawa GPE 16 CARDINAL is still quite buggy I don't find it particularly intuitive and it's not compatible with most iPads and many third ORDINAL party apps on the App Store the Clearly need some more polish and complaints from consumers about stage manager will now no longer probably overshadow the earlier launch of the iPhone 14 CARDINAL . I've always been a person who's just been attracted to hair I like to see and think and theorize how I can manifest these visions that I have for braiding and how I can take something that Macy ORG It's a line drawing in my mind and apply that to someone's scalp We are the only culture that has here that grows out of our head the way that it Anyone from the African NORP diaspora is born with this amazingly A variety of different ways of expression. I want black people to love themselves for how they naturally appear and also to appreciate the cultural practices such as writing that our ancestors have practiced For centuries DATE . When US GPE jobs numbers are released The power pivot. Hey Boy frankly the market has 2023 CARDINAL laws. Welcome to day break Asia LOC I'm Heidi Strad Watts PERSON here in Sydney GPE . We're going down to Asia LOC 's major market opens. The top story is this hour TIME or risk golf mood to start the week DATE with industrial spreading about growth threats and Awaiting clues on the feds hiking plans from Jackson Hall FAC later this week DATE An energy crisis adding to those economic pressure Industrial power supply limits These. About that 20 CARDINAL level but it's really about what the Officials were saying across the week DATE we're looking ahead to Jackson Hole FAC what will they say when it comes to the
Fan officials were saying across the week DATE we're looking ahead to Jackson Hall FAC what will they say when it comes to the With a lot of volatility already headed Now below that $ 90 MONEY per barrel level and bell of We continue to watch what's happening with Iranian NORP supplies as well. Yeah certainly that could be something if it came back into the market help us send it oil prices low but in terms of what you just mentioned there about And hold this week DATE it's certainly the major event on the calendar for us just how hawkish fed the Fed ORG share J Powell PERSON will be and certainly this expect Equity now looking low for Japan GPE and A little bit mixed off that the yen sitting like this but certainly By the end of the month DATE let's turn on now this terminal chart though because we've also got 300 CARDINAL companies reporting in China GPE this week DATE . The question will be whether they hit to profit is as bad as what was indicated in the data but in terms of the direction of what we've seen for stocks while we have seen at that hour TIME performance that we have for Chinese NORP stocks in the second quarter DATE versus So we're down around eight% for Chinese NORP stocks around the 12% PERCENT versus they get those games are nearly eight% for world stocks over the past couple of months DATE so The officials in Beijing GPE are really gonna have a lot of troubles here to revive those investor spirits. Yeah for more in today DATE 's top stories is bringing global economics and policy editor Kathleen Hayes PERSON chief North Angel PERSON correspondent Andrea PERSON This will be the first ORDINAL time that policy makers Meeting in person since 2019 DATE what can we expect on the policy side of things? Speaking with Bloomberg Television ORG J Powell PERSON 's a bit more of a question here and of course as you guys just said Is it going to be on inflation what what's he gonna say about what his view is how hard they're going to have to push and remember now Jpal PERSON hasn't spoke One CARDINAL of the biggest topics we're gonna be watching there headlines CPI breaking from nine CARDINAL One% junior over year to eight and a half percent DATE in July 0 DATE that's one of the reasons that the market so maybe the the Remember there are 528 1000 CARDINAL in the month of July DATE about double Forecast ORG labor market is still strong that's it many see is a green light for the fed ORG to push as hard as it needs to Is Risk recession. This is the question. How high? How fast? Is he going to signal? His willingness to push the fed ORG funds rate higher. And you can see from this Economist And of course the fed ORG is signing now that they are going to go up to four% by the first half of next year DATE which doesn't seem to always jive with what the markets expecting. I calculate in the meantime what are we hearing from some other fed ORG speakers well let's start Latest speaker on Friday DATE Tom Barkin PERSON he's president of the Richmond Fed ORG and he said that you can see let's read what exactly what he said we're committed to bringing down inflation to the two% ORG target will take what it take do what it takes to get there There's a path to getting an inflation under control. I guess he means, you know, you gotta raise rates. Maybe, aggressively, but a recession could happen in the process Other beneficials have said the same kind of thing. Just really in the last month DATE . Now, Jay Powell PERSON is not going to signal 50 CARDINAL or 75 CARDINAL basis points. This is not there's no Q&A here. In fact, this isn't even public.
Kind of thing. Last month DATE . There's no Q&A here. In fact, this isn't even public. Televise these are these are part of the sessions on the Friday DATE morning TIME and the Saturday DATE morning TIME we will all report on them but you won't actually hear what he says he'll probably give a speech I would assume that somehow Maybe I'll talk about what's the Or is it something much higher I think one more thing is that if he focuses on the ability to get the soft landing and yes we'll do what it's take but we're really betting on the south landing that could be seen as doveish I think for people that Your baby gonna have to have him come out more definitely and clearly he's hoping for a soft landing His baseline but he's ready to push hard and keep pushing like Paul Volker PERSON did back in 1979 DATE 8081 82 hmm going in the other direction though is the PBOC in China GPE not surprising Steve PERSON given a call the economic So it adds to the headwinds of course of the Chinese NORP economy that saw those July DATE eco data just last week DATE coming in well below expectations and yes we're gonna Reading the lawn prime rate later today TIME for for bank lending which is also a trailed off considerably in July DATE but those power crunch that that Seeing in This is one of the most populated provinces in China GPE . It's heavily industrial as well. Lot of factories we're hearing that they authorities have extended the power cuts to factories. A number of different factories that was supposed to expire on Saturday DATE but because of the extreme problems that we're With the water levels in the hydro electric dams there's not enough power for all these factors they've extended those power cuts to industrial areas of through this Thursday DATE could even be longer we're we're looking at Chungdu GPE has not Even AA smidgen of rain for more than 2 weeks DATE . Has been a drought for 18 days DATE other cities and nearby provinces like Also have not had any amounts of rain this month DATE . So, that is really taxing the power grid right now and that will be taxing the growth projections or the the efforts to try and stimulate some sort Broken overall slowing economy in China GPE . So are we expected to see that trimming of the benchmark borrowing costs by Chinese NORP banks and I guess the more important factor is is that going Given that we know there's a lot of liquidity and not perhaps as much demand. Yeah M two CARDINAL is is is more than expected and then the bank lending an aggregate financing in July DATE was well below expectations and well below trend for this time of year DATE so this is the big problem corporate And households are reluctant to borrow right now so I think 16 CARDINAL out of 16 CARDINAL economist survey by Bloomberg PERSON do expect that we'll get a cut at least 10 CARDINAL Which is more closely tied to mortgages a six CARDINAL of those 16 CARDINAL expect at least a 10 CARDINAL basis point cut the last It was cut was in May DATE it was 15 CARDINAL basis points so we could get even bigger one on the 5 years DATE so again it it's it comes back What we saw in this chart here earlier last week DATE we had the 1 year DATE MLF ORG cut it the PBOC a surprise cut that paves the way for banks then to potentially today DATE at the fixing to cut the Primrates PERSON . How the market trade this. Hi, Sherry GPE . I think one of the main focus points for the market this week DATE is what's what is that yield curve are going to do especially going into Jackson Hall FAC . You know, we know that that curve flattening trade. I know has been a winner for most of this year DATE but you know,
Thank you. Japan GPE 's government says prime minister Fuyo Kishida PERSON has tested positive for COVID and has relatively mild symptoms. The 65 year old DATE developed a cough and slight fever on Saturday night TIME and came out positive in a PCR ORG test. He's currently resting at the Prime Minister's official residents and is expected to resume duties remotely on Monday DATE . China GPE 's latest COVID outbreak is worsening with new cases jumping by more than 2000 CARDINAL over the weekend DATE . The Southern Island LOC Tibet GPE and In Hong Kong GPE daily DATE cases rose to the highest and more than 4 months DATE on Sunday DATE at six and a half 1000 DATE . The city is reopening one of its biggest isolation facilities as the surge puts pressure on hospitals. Singapore GPE is revealing a colonial era law that criminalizes sex between men. Prime Minister Lician Lung PERSON says removing the legal ban on sex between men is the right thing to do and something that most Singaporeans NORP will now accept. Please stop short of recognizing same sex unions adding that the constitution will be amended to Definition of marriage is being between a man and a woman. Australian NORP Prime Minister Anthony Albanese PERSON says taming inflation is a key priority for his government. Headline inflation was running at the fastest pace in 21 years DATE in the second ORDINAL Department will not hit 10% PERCENT . Global news 24 hours TIME a day on air and I'll remember a quick take power by more than 2700 CARDINAL journalists and animals and more than 120 CARDINAL countries I'm Vonnie Quinn PERSON this is Bloombury Sherry Than 400 CARDINAL new ventures. Decision with ANZ This is Bloombark PERSON . Is it possible the industries in an arms race that will Lead to spending itself into an over supply. I mean, that has happened before We we we've looked at this very carefully and you know, the digitalization of everything. Tell me what aspect of your life, Emily? Is it becoming more digital? Well, I'm trying to prevent that but yeah. Hey COVID has accelerated that. The industry cost 500 1 billion dollars MONEY last year DATE . It's not that there's not gonna be some blitz and turns on the way and the majority of that is driven by Process technology of which only three CARDINAL companies can satisfy that needle. Bloomberg PERSON brings you crucial data at Terminal Speed ORG . People are going full risk on. Hey
Hey Facebook Hey Economic impose Always closely washed of course for clues on the path ahead for the fed ORG and other central banks that's Ahead. Sherry you mentioned Jackson PERSON the whole that's gonna be a key determinant for market sentiment as we get into this trading week and our next guest says but he sees no sign that inflation data or the labor market are showing any strong signs that are sufficient for the fed ORG to declare a victory on inflation Richard PERSON is the cheap economist at Anne ORG 's and he joins us Joins PERSON us now from the Sydney Stuart ORG . Richard PERSON , great to have you with us. So, we're all getting bit ahead of ourselves. Oh, I will. If you think back last year DATE , the question was this transitory. So, this question in different forms has been asked all the way along. We can at least say The inflation numbers probably are peaking somewhere around here and we've got Singapore GPE this week DATE . A similar story there. The real question is our policy settings consistent with withinflation returning to target band and staying around target. Fed ORG phones is only Five. Expectations for Chapel. Does he use this week DATE as a reset and communications particulars there's a lot of concern about the stickier parts of that inflation basket. I mean if there's Probably the reset needs to be to tell everyone to take a step back again and just look at the broader picture because I think people are getting quite narrowly focused on individual data Lisa PERSON 's weather inflations peaked all night TIME . The fact we've had two negative quarters DATE of GDP growth in the US GPE rather than saying, well, hang on. We still have rates at two CARDINAL . Five which is below the feds estimate of neutral. We're coming on the back of Unbelievable policy stimulus from 2020 DATE In 2021 DATE the labor market still we have still two CARDINAL job vacancies for everyone employed person wage growth and core services inflation is still about four% double the inflation target I think the feds got quite a bit of work to do yet. Richard PERSON same issue but different set of circumstances for what's happening in China GPE , youth, unemployment, just soaring right now. The previously trying to support the economy. Are they doing enough? On depends what you've been mean by enough There's still seems to be some concern and I think justifiably about adding more liquidity to a system which already seems to have an excessive stock of liquidity and obviously there's been issues around Deposits and mortgages in the last couple of months DATE and let's not forget the ongoing adjustment in the property sector around debt in that sector credit exposure which companies are are really viable in a much more slow slowly growing Chinese NORP economy so they could definitely do do more but I It's this trade off between short term stimulus and long term trend it looks like we should just expect China GPE to be a much more slowly growing economy over the next few years DATE . What do you think about narrative forming these days DATE about a liquidity trap because of all of the issues that you mentioned and what can the policy makers do Fix this. Look I don't know that there's a liquidity traps certainly monetary policy seems to to get less traction that it has in previous cycles but we also saw that In Europe LOC after the GFC in the US GPE during the GFC ORG . In Australia GPE in the period before the pandemic. So, this is not that unusual and and as I suggest that I don't think China GPE is really Going to juice the economy up and generate much stronger growth.
Think China GPE is really trying to juice the economy up and generate much stronger growth through monetary easing alone. The look that the liquidity trap elements of the policy landscape are not helping. I Think they're the primary problem though. Is it gonna be an easy transition to you say what's likely to be just a prolonged period of slower growth. I mean obviously borders not opening and COVID oh is not gonna help but There is impediments to seeing a high level of growth right? Unlikely it will be smooth but then we don't have many historical parallels. I think for me the defining feature of this pandemic for China GPE is what it's done to demographics. We know the structural demographic Is quite poor but you've had at least what we know of as two CARDINAL very low birth rate years this year DATE is likely to be another a year DATE of very low births as well. The combination of those two CARDINAL things mean China GPE 's gone from growing quite quickly to I think In a very short space of time growing quite slowly housing is a share of GDP's housing construction is likely to have peaked because of that What things are gonna fill the hole on the other side. Will that Carlette ORG 's into household wealth to spending not to mention the social aspect of it as well right so how do you see the government I guess being able to being able to handle that and where does that potential future growth come from is leverage Concerns LOC . I think leverage is still a concern. Even if they can just kind of shift from one hand to the other. Well, I think so because the corporate sector we know is quite reasonably leveraged as well. The house Sector in the last 15 years DATE has gone from effectively nowhere to having leverage that looks more like an advanced economy and we can see as the housing sector decelerates it's problematic for the economy I think the answer is there isn't really anything to fill the hole China GPE 's focus more on quality of growth the distribution of growth because I think the reality is in aggregate terms China GPE will grow more slowly than we've seen In in modern history. Richard PERSON and of course today DATE we also have Pakistan Central Bank ORG decision is not necessarily The reason that I bring it up Central bank Heavily are we going to see more vulnerable nations spiraling into crisis? Look I hope not but certainly I don't think Fed ORG phones is gonna give them much rest but either in the other key data I'm watching this week DATE actually is export orders out out of Taiwan GPE a very good barometer of the trade cycle that's almost certain Potentially quite sharply signalling where at the end of the mini export boom we've had the last 12 or 18 months DATE but if fed funds finishes the year DATE at four% which is our current expectation I do Economies like Pakistan GPE turkey, Argentina GPE , Sri Lanka GPE . Unfortunately, I'm gonna feel the pinch because of that. Richard PERSON always great to have you with us. We appreciate your time Richard PERSON . And said here in Sydney GPE planting water come here on day break Asia LOC this is Bloomberg PERSON . While Tesla ORG 's in the like make for good headlines the reality is that even if every car on the roads today DATE when electric it wouldn't be enough to curb global emissions to avoid catastrophic climate change. Greenhouse gas emissions from transportation account for about 29% PERCENT of total US GPE greenhouse gas emissions. So what about the other 71% PERCENT ? All electric we want to turn buildings into Tesla ORG 's
Vehicle is all electric with no fossil fuels. We wanna do that with our buildings and if we can do it in one CARDINAL building, we can do it in all buildings 30% PERCENT of US GPE greenhouse gas emissions. Welcome to the world of decentralized finance Bring all things crypto. Both saw double digit gains in the first 10 days DATE . And Saul will begin as big as joint military exercises with washington GPE after 5 year DATE hiatus that fail to entice North Korea's GPE Kim Jong-un PERSON to make concessions in the sarment and talk And here's a quick check of the latest business flash headlines Warren Buffett's PERSON Berkshire Hathaway PERSON won approval from US GPE regulators to buy as much as 50% PERCENT of accidental petroleum Berkshire PERSON spent the year wagering more on accidental Accidental NORP stock had its biggest gain in 5 months DATE . Billionaire Ryan Cohen PERSON pocketed at a 68 1 million dollars MONEY profit from the sale of his steak in bed bath and beyond an investment he held for just 7 months DATE while Cohen PERSON scored a 56% PERCENT gain other retailer After Cohen's exit. How long answered management will be in focus when China GPE opens for trade that's after a moody's investor service put in on review for a possible downgrade it says the bad that manager faces increasing acid quality strains after it's projected first half DATE loss with the forecast that was worse than expected it rains Territory ORG . Search about that 20 CARDINAL level we had some Perhaps not surprising given all of the fat speak that we Also down four CARDINAL tenths of one% ORG while kiwi stock Are in the pressure despite the fact that we're seeing a pretty weak Japanese NORP yen against the US GPE dollar that 137 CARDINAL level. Coming up Singapore GPE set the scrub most rules on wearing masks indoors for the reason it's COVID curves we have the latest next this is Bloomberg PERSON
The Indian NORP city of Jamnigar is a money making machine for Asia LOC 's richest man Mukesh Ambani PERSON His company reliance has the world's biggest oil refinery complex here in the city. Jammiga GPE is also where Ambani PERSON is making his newest bet A 10 1 billion dollars MONEY investment in green energy His ambition is closely aligned with the Indian NORP government's plan to reach net oh emissions by 2070 DATE But Barney PERSON is not alone. India GPE 's second ORDINAL richest man galta madani PERSON has committed 20 1 billion dollars MONEY of investment over the next decade DATE . But India GPE 's massive dependencies on fossil fuels have some environmental applicants questioning the realism. Talking about that all day DATE yesterday DATE . Largely supply driven supply shortages. Say a potential cure for inflation. Is probably supply sides related supply problems requires supply solutions not something that monetary policy is apped and so driving a recession is really a poor and sub optimal outcome. There's no need for central banks to rama recession down the throat of economies. It's simply Do not need raids to be to moving high. We just need a period of absorbing and also allowing some of those mechanism to work through work it's way through. Discussion around the Necessary to rain inflation as bring back Annabelle PERSON what else you will learn from this survey? Yeah, quite a few takeaways here. Share is of course inflation. It really is the most watched indicator going into the second half of the year DATE . So, you've got that question of whether it can be And gradually without really hitting consumers companies all whether the fed ORG is going to be needing to be a lot more aggressive in terms of what our survey found well the vast majority of respondents said that we've actually seen the peak of price pressures in the economy despite the fact of course that Jay Palace PERSON also expected to take quite a hawkish message in to Jackson GPE hole this week DATE let's change Whether we go from here getting down to that two% ORG target we are of course it around eight. Five% now in the latest survey so we had about 900 people Now that of course what it means for company profits as well what's gonna be a negative four CARDINAL stop prices because the fed ORG says of all rather respond Businesses here while we are gonna see stocks really declining that is inflation takes a big On company province in Heidi PERSON are so very also found that treasury should be high in 1 month from now DATE . Annabelle PERSON is there in Hong Kong GPE let's get the latest on COVID now in Singapore GPE is moving to ditch the rule when it comes to mask weary across most indoor settings as it moves Away PERSON from pandemic era restrictions Emma O'Brien PERSON who's our editor for managing others for Asia Golden Business Trains FAC is here in Sydney GPE with the details and Emma PERSON you kinda have to remind yourself We've come to this point from Singapore GPE really having some of the stricters, COVID settings in the world at one CARDINAL stage. Yeah, I mean, it's a really interesting example when you compare it to China GPE . For instance, yeah, I mean, a year ago DATE , Singapore GPE Was trying to eliminate COVID as well. Very very strict border curb sand and internal curb.
For instance yeah I mean a year ago DATE Singapore GPE was was trying to eliminate COVID as well very very strict border curb sand and internal curbs as well And they have sort of kept a lot of those shedding them just gradually when it comes to the internal stuff prioritizing that opening at the border and in in that you can come and go Easily from Singapore GPE but yes the the last sort of vestages of those internal curves the indoor mask wearing mandate in Singapore GPE being done away with you will still need to wear it in hospitals nursing homes and and other sort of vulnerable situations but other A step toward minimality for Singapore GPE there. More than 2000 CARDINAL new cases in the latest testing. This is a lot Vacation free hotspot A lot of the cases in China GPE are coming up in tourist hot spots in tourist places to bet Shincheang PERSON Was another one a month or so ago and we are seeing lockdowns come where they are travelling trapping travelers and holiday makers in the process and you've gotta think that it's gonna have a hit to consumption and to sentiment Around domestic travel which is of course the only sort of travel that Chinese NORP people can actually do right now. And of course we continue to see those cases in Japan GPE and now we're hearing that Prime Minister Kishina PERSON has tested positive. Yeah, that's right. Japan GPE seems to be sort of at the pico of their way every country on sort of slightly Tens of thousands CARDINAL of new cases a day Exemplify by by Kashida GPE 's infection apparently he's doing okay and we'll resume some duties today DATE of course isolated. I'm O'Brien PERSON with the latest on the pandemic across Asia LOC right now. Let's go to Bonnie Quinn PERSON with the first ORDINAL word headlines. Funny. Sherry ORG , thank you. The Chinese NORP province of Industrial power cuts to deal with what it calls extremely outstanding deficiencies and supply officials say blistering temperatures and surging demand for air conditioning of course gaps and the generation of the power in order limiting power supply to some industrial users will reportedly be extended to Thursday DATE from Sunday DATE 's original end date. Richmond GPE fund president Thomas Barkins PERSON has the central bank is committed to taming US GPE inflation even if that means risking a recession. Barkin PERSON says policy makers will do what it takes to return inflation to their two% ORG target. While acknowledging that a recession could happen in the process. Recent fed ORG speakers have agreed more rate hikes are needed while debating the size of the next move. India GPE 's food department says it is no plans to import heat with current stocks efficient to meet requirements reserves decline to their lowest monthly DATE level in August DATE while prices have surge nearly 12% PERCENT Government officials are now discussing whether to cut or abolish a 40% PERCENT import tax on wheat to help flower millers in some regions get supplies Germany GPE may not be able to replace all its imports of Russian NORP natural gas this winter and might have to resort to nuclear power. Decades DATE has forced politicians to look at alternatives including atomic energy which Germany GPE had decided to Journalist analyst and more than 120 CARDINAL countries I'm Bonnie Quinn PERSON this is Boomberg PERSON . Cherry. Incubate funds Paul McAndrew PERSON joins us next this is Bloomberg PERSON
Bloomberg PERSON surveillance early edition for the news you need when you need it In New York GPE and Anna Edwards PERSON in London Retail ORG earnings from both home depot and Walmart Hey Facebook Consumer spending. Be prepared via head of the game. There's a really reminder isn't it just how sensitive the markets are to any commentary about trade we did see some pressure on the UN ORG we did see some pressure on the future that is now being reverse Japanese NORP futures under a little bit of pressure despite the fact that we have a pretty weak Japanese NORP yen holding at that one Strength ORG of the US dollars we look Head to Jackson Hall FAC and expect that official to talk about the rate past forward we have already had pretty hawkish fetch really pointing two CARDINAL more rate hikes But right now Japanese NORP futures under pressure and this of course as we continue to look ahead to the open delve into Japan GPE start Feed stage venture capital form incubate fund which has managed over four and a half DATE one 1 billion dollars MONEY and invested in more than 400 CARDINAL startups with us Across Japan GPE . Good morning TIME and thanks for having me here. Delighted to be here. As you noted incubate fund is a seed stage fund based at Tokyo GPE I need Japan GPE today DATE the VC PERSON environment I think's exciting for a couple of reasons one is that Deployment of of capital of VC PERSON has increased by nine CARDINAL times over the past 8 years DATE . It's now at roughly just south of eight 1 billion US GPE . And as you know the before the government Japanese NORP government has the aspiration to take that up to 10 CARDINAL times over the next 5 years DATE but on top of that I think the scale of the economy being the third ORDINAL largest economy but also having massive upside in terms of capital and labor productivity Potential PERSON is what makes me excited about VC PERSON in Japan GPE . How do you feel about Prime Minister Kishi PERSON that's initiative to try to buy a more direct purchasing by the Japanese NORP government as well I think I think it's probably the most exciting the initiatives that have been announced many governments around the world have made different attempts to spark and drive VC PERSON but I think the one of the most successful is the small business innovation research program in the US GPE which says I understand it is is what Japan GPE is modeled this program after and direct purchaseing by Japanese NORP government Especially deep text startups if you think about space healthcare cyber security can make a massive difference in inventions just getting started Well what do you think the biggest change Japan GPE needs right now particularly in the context of being able to And then foster a greater level of innovation. I think there's a couple in addition to the direct purchasing. I think one is capital location.
For a greater level of innovation. I think there's a couple in addition to the direct purchasing. I think one is capital application. The GPO ORG obviously operates independently through gatekeepers but there's been an increase in allocation to alternatives from GPIF ORG . I think the Japanese NORP government as well is also planning to invest more adventure funds and I think that'll create a For a couple and I think the other big piece is Making Japan GPE or continuing make Japan GPE and attractive destination for both founders and VCs from overseas In addition to helping with talent domestically Changes in for example the the tax treatment of stock options so I'd I'd say they're the big ones that can further drive this. The incubate us approach is quite interesting right so if I understand it you have kind of AA collection Ideas and and businesses that you would like to find and then you try and find the the founders that might share that. Yeah, that's right. So, typically, Avenger Farm ORG might take 500 CARDINAL companies and work through stage guides to establish the the best opportunity We'd take the reversal approach we have a set of ideas each of the general partners of the firm has 12 CARDINAL to 15 CARDINAL businesses we like to build And we search for founders who are passionate about those ideas so it's it's very much precede most of the time we invest when there's only literally a founder and maybe a business plan so that takes a certain skill set but it's work very well over the Paul PERSON tell us a little bit about the start of culture in Japan GPE because of course we know that one of the best ways for people to accumulate wealth in Japan GPE has been going the corporate way becoming a salary man having those employment jobs for life for young Japanese NORP people what's the mentality they've been so far when Risk taking an innovation for young entrepreneurs It's an excellent point. I think what's happened under the radar that people don't realize in Japan GPE is the notion of an elite path in Japan GPE 's change pre-dramatically over the past 10 years DATE . 10 years ago DATE I was formally at a at a consulting firm 10 years ago DATE colleagues and colleagues would leave for private equity or multinationals Over the past 2 or 3 years DATE I'd say 60 or 70% PERCENT of people leaving top tier professional services firms are going to start ups And so the notion of you know trading company on Mega Bank NBA ORG and a lifetime career is shifted quite quickly to people wanting to get some experience in business but then quickly moving to startups so I'm I'm excited about that shift and I'm not sure if people really realize that. And do you have them Italian NORP pipeline Anita PERSON in order to fund all of these businesses are Facilities ORG actually helping these young potential entrepreneurs to to really get into the field and and be able to make something out of their ideas Yeah more and more there's there's more accelerators incubators there's more university programs around entrepreneurship importantly there's also a massive gap in Japan GPE around digital you know Programming ORG and data science and engineering and more universities and interesting those programs so you're seeing an ecosystem build around the talent side of it to provide more talent now to be clear there's a big gap there's basically the US GPE for example But it's heading in the right direction What else can the government do at this point in order really to get a Japan GPE to that point because we have seen not only with this admin Pledging Administration ORG from the Kozumia PERSON What's changed so far how much progress has there been and what else needs to be done? I I think the progress has come with well the the shift that I'm seeing today DATE is the willingness of the government to be more direct in in a sense in intervening to to give venture companies ahead start So if you're thinking about the SBIR ORG program in in the US GPE and other programs like that and you look at some of the US GPE 's most successful deep tech firms in space. They've really got their start through that direct voting. So, I think that has been something where traditionally in Japan GPE , I think, you know, a fair process and auctions has been a big emphasis but I I think people starting to realize that if a company had
Has been a big emphasis but I I think people are starting to realize that if a company has That's that's valid that the direct purchase thing in a more efficient purchasing progress is gonna process is gonna make a difference So I think that would be the the biggest you know shift. It's good to hear Paul McCartney PERSON general partner are the incoming fund it's good to have you with us thank you you can watch this Discuss discussions on our Function ORG . This is for boom work subscribers only. Check it out. A TV go. And coming up next at South Korea's GPE biggest car sharing service is making its market debut details on so cars opening day straight ahead. This is bloom bar. Economic policy symposium Discuss the economic issues and solutions that keep the world's money moving Across China GPE we see infections now surging to that Month DATE hi when it comes to Shanghai GPE as reporting four CARDINAL local COVID cases Sunday DATE . Again, Sonia, 550 CARDINAL Shanghai GPE , four CARDINAL local cases as we continue to watch those developments very closely in case we might see more lockdowns given the infections rising across Free. Take a look at Bitcoin rebounding invigation session a little bit but this of course after suffering a sharp sell off as global markets turn risk golf as a fed ORG reader rates as resolved to keep raising interest rates until inflation is contained let's get From our cross as a team at Rojuana ORG also Georgiana ORG so What's going on with crypto prices right now? I mean we're seeing a lot of volatility but it seems to me that it's all about how risk us it's due at this point. It is. That's a big part of it. Just generally with the macaroon. There's a lot of uncertainty and so encrypto is going along with the risk assets But it is also pretty volatile just generally and Friday DATE we had a really big drop in a span of just a few minutes TIME and now Bitcoin went from kind of making a move higher to really being back below it's 50 day DATE moving Average other cryptocurrencies have also kind of been depressed in the past few days DATE so you have a lot of them down say 10 to 16% PERCENT so there is a little bit of suffering right now John I've been hearing about Ethereum PERSON 's big merge does that change things in terms of the power structure? Yeah, this one's pretty interesting. So, you know, the the merge upgrade is is supposed to make make a theory less power consuming and that sort of thing but it's Going to change the overall structure of kind of influence and we're going to have builders
Make a theory less power consuming and that sort of thing but it's also going to change the overall structure of kind of influence and we're going Instead of just minors and these builders will be able to kind of send the transactions around to different different groups and there is some concern that they could you know send everything to one validators something like this But you know the and there aren't a whole lot of builders at this point. There have been a lot of the different liners. So the the builders and other people really affiliated with Ethereum ORG have said that this isn't going to be a And that it's going to work out. They're going to spread everything around but there have been some concerns about especially initially The builders could make things kind of more centralized and consolidate power. Across as a team editor Joanna Ossenger PERSON there were the latest let's get you a quick check of latest business splash headlines United Health Amazon CVS Health and Option Care Health ORG are said to be among the bitters for signify health sources telling Bloomberg PERSON that United Health ORG has submitted the highest bid in excess of $ 30 MONEY a share Amazon ORG 's offer is close behind signifies holding a board meeting on mandate to discuss those bids which could be announced as early as this week DATE . Japanese NORP trading house with Sue PERSON has reportedly decided to keep its investment in the natural gas venture that's after President Vladimir Putin PERSON ordered a shift in the project operator to Russian NORP entity the Nico ORG says Mitsui ORG 's no damage to its interests and plans to make a formal notification as soon as this Indexes is adding Beijing Energy ORG pharmaceutical to the Cut ORG those changes to take effect on September 5 DATE . PTMCO VJ Sharma PERSON is staying in charge of the spark calls for him to be replaced and in fact, Shareholders voted at their annual DATE general meeting to keep Sharma GPE advisory firms earlier called for a vote against his rear appointment ATM ORG has lost more than 60% PERCENT of his value since the IPO ORG . Because of more Really the current market conditions that are both well for the company Yes, good morning TIME . Heidi PERSON . So, yes, so Car PERSON was one of the key beneficiaries during the pandemic. Any Big user base crews and revenue girls during the pandemic but this fight is gross during the pandemic the company's IPO process was pretty disappointing it's it Share floats and first ORDINAL they pop and Cars right now valued slightly lower than 100000000001 DATE based on as soon as you're offering price and that's about less than half CARDINAL or about half CARDINAL of this two to 300000000001 valuation that was expected And the company is still decided to go ahead having two CARDINAL flashes by peel size significantly due to like loss or demand I feel in South Korea GPE as you mentioned. What are we expecting in terms of the debut So it will be a big surprise if there is a birthday pop today DATE at the solar given very light last year demand during danger public offering the company's also At a time one menu of the many of us protect companies One public with landmark reviews and during the pandemic are trading far below their offering prices so we'll